Number plate changes rolling out this week expected to offer massive boost to new car market
New number plate changes will be introduced on September 1
PA
The upcoming number plate changes this week are expected to cause a huge boost to the new car market, experts have flagged.
As the licence plates change on September 1 to reflect the latest “74” identifier, experts have stated this could see new car sales grow by seven per cent.
According to the latest Auto Trader data, tactics to stimulate demand by improving affordability and choice for vehicles “is proving successful”.
The volume of new cars advertised on Auto Trader has been steadily increasing all year with levels in August 23 per cent higher than in January.
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New car sales are up 23 per cent in August
PATo increase new car sales in the lead-up to the licence plate changes, the company detailed how the average discount applied has risen from 8.7 per cent in July, to 8.9 per cent this month.
Over the last year, however, discounts have grown from 6.7 per cent to as much as 10 per cent, particularly for electric cars.
Data recorded how some discounts have rocketed from 6.6 per cent to 10.9 per cent over a 12-month period.
Bex Kennett, performance director at Auto Trader, said: “September remains a vital selling month for the new car market, so despite the broader challenges, the robust performance we’re seeing on our platform should be a cause for optimism.”
The report also highlighted how Honda and MG were some of the most popular brands for electric cars as MG took 16 per cent of the overall share of all new electric enquiries found on the site, while Hyundai took 8.2 per cent and Honda gathered 7.8 per cent.
Kennett added: “To make sure our partners have the best opportunity to profit during the key plate change month.
“We’ve just launched our largest-ever consumer marketing campaign, which is focused on driving many more highly engaged new car buyers to the 20,000 new cars advertised on our platform.
“I’d urge retailers not to miss out on the opportunity and make sure their stock is where buyers will be looking for their next new car over the coming weeks.”
BMW, meanwhile, benefited from an 11.5 per cent increase in electric car advert views in August and accounted for more than one in 10 (13.6 per cent) of all new carenquiries sent to retailers.
Land Rover took 12.9 per cent of demand for new car enquiries with Volkswagen coming in third with 7.9 per cent.
Auto Trader commented: “Thanks to an enticing combination of discounts, deposit contributions and finance offers, demand has surged, with its share of all new EV enquiries increasing to 6.8 per cent, up 5.1 percentage points in just four weeks.
“MG hasn’t limited its big push to just the ZS model, with the MG4 the second fastest climber, accounting for a 6.5 per cent share."
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Electric cars offered the most discounts on new cars this yearGETTYExperts have suggested that the upcoming licence plate changes to the new “74” plates will make second-hand cars more valuable.
The new number plates will be updated on Sunday, September 1, marking the second time this year new registration plates have been rolled out after the "24" plate on March 1.