Monthly Motor Trade Round Up February 2020
Catch Up On Februarys' Top Motor Trade News
Rising CO2 Emissions From New Cars
A recent study by Which? reveals test data showing that new cars on UK roads, when tested, produced more carbon dioxide than their older counterparts, regardless of the country's 2050 target for net-zero carbon emissions.
Every car that had been previously tested since the start of 2017 (292 models) had been looked at as a comparison point. The average increase between these vehicles and new vehicles was 10.5g/km of CO2 which brings it to a 7% increase overall.
Small petrol cars saw an average increase of 11.2% while mid-size SUVs rose by an average of 20.4%. The worst offender was the large petrol-hybrid vehicles which recorded an average CO2 rise of 31.7%. These vehicles were all subjected to the same analysis and tests as their predecessors. Every vehicle is set up for everyday use, with air-con on, radio on, and increase of weight to make an accurate representation of an average person’s CO2 emissions.
It was claimed that the increase of CO2 emissions in the latest models could be due to an increase in vehicle weight. While lightweight materials have been invested in within the car industry, the size of the vehicle contributes to an overall weight gain.
Lisa Barber, Editor of Which? Magazine, said:
“It is shocking to see our tests uncover increasing levels of carbon dioxide emissions for the latest cars that are being built and sold to UK consumers.
“Manufacturers must ensure that they are doing everything in their power to create cleaner vehicles that are fitter for our planet and its future.”
It is said that from 2021 onwards, the average CO2 from official tests of new vehicles must be 95g/km or less (the limit in 2019 being 130g/km). This is across all vehicles a manufacturer sells in a year, with a hefty fine of 95 Euros per gram over the limit for every car they sell.
New Car sales are set to fall even further in 2020
With used car sales continuing to rise steadily each month, new car sales are falling even further.
With the changes to CO2 emissions coming into play, manufacturers are having to change the way they produce their vehicles. Not only that, but people are far less likely to commit to purchasing an expensive new vehicle due to road tax changes and their increased CO2 emissions. These changes open up a vast amount of opportunities for used car sales; not only are they cheaper, but they are less of a financial risk when looking at the upcoming diesel changes and the impact on vehicle tax costs.
New car registrations saw a 2.4% drop in 2019, which was considered a fairly good result when looking at the current social, economical and political climate. New vehicle registrations in 2020 are expected to have a small-but-steady decline, which is dependant on any future legislation regarding clean air zones and taxation.
Online Sales Jump in January 2020
It has been recorded that levels of online vehicle sales increased by 23% across the board in January, compared against the trading volumes for the same month last year.
Online and digital sales have always been a point of contention for motor traders, but week-by-week digital sales increased through January. Statistics have shown that over 36% of all sales during January were via online and digital channel methods.
Online methods such as Ebay e-Auction, ‘Bid Now’ & ‘Buy Now’ channels are becoming increasingly popular in regards to used vehicle sales.