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The UK new car market grew by 2.9% in January with 174,564 new vehicles registered. The performance reflects the strength and importance of the retail motor sector adding to the growth of the UK economy.
New passenger car registration rose by 2.9% in January, marking a 12-year high. Alternative fuel vehicles continued their positive trend (+19.9%) and now have a market share of 4.2%, the highest ever. Private demand grew by 5.0%. Diesel registrations were down -4.3%, while petrol saw an increase of 8.9%.
It is extremely encouraging to see that following last year’s slowdown, private demand came back strong with a growth of 5.0% in January.
The decision of the Bank of England to raise the growth forecast for this year from 1.4% to 2.0% is a positive sign as, in line with January’s new car market figures, shows that the UK economy has remained stable in the aftermath of Brexit.
A number of factors including the new and more expensive VED tax rates coming into effect in April, low interest rates and attractive finance packages will continue to attract new buyers in the upcoming months.