[{"@context":"https:\/\/schema.org\/","@type":"BlogPosting","@id":"https:\/\/smart-motoring.com\/blog\/cant-trust-new-car-sales-figures\/#BlogPosting","mainEntityOfPage":"https:\/\/smart-motoring.com\/blog\/cant-trust-new-car-sales-figures\/","headline":"Truth behind new car sales figures","name":"Truth behind new car sales figures","description":"As sure as day follows night, the first week of each new month sees the publication of Britain\u2019s new car registrations. These numbers – collated and reported by the Society of Motor Manufacturers and Traders (SMMT) – reveal how many new vehicles were registered in the previous month. They\u2019re important because they provide a vital insight into how the economy is performing, much like how high street retail data is viewed. However, new car registrations are frequently – and erroneously […]","datePublished":"2016-11-22","dateModified":"2017-01-25","author":{"@type":"Person","@id":"https:\/\/smart-motoring.com\/author\/isabelle-lawrence\/#Person","name":"Isabelle Lawrence","url":"https:\/\/smart-motoring.com\/author\/isabelle-lawrence\/","identifier":30,"description":"Max Wheeler is a leading motoring journalist and classic car specialist at Smart Motoring, renowned for his sharp insight and infectious passion for all things automotive. With years of experience covering motoring news, supercars, and the enduring legacy of classic cars, Max brings stories to life with style and authority. Whether it\u2019s the roar of a Lamborghini, the elegance of an Aston Martin DB5, or the cultural impact of vintage motoring icons, he delivers expert commentary that inspires enthusiasts and collectors alike. Dedicated to celebrating the heritage and future of driving, Max Wheeler is your trusted voice for classic car news and beyond.","image":{"@type":"ImageObject","@id":"https:\/\/secure.gravatar.com\/avatar\/8d331506e3c530b5ec4930c30a01ed8cc29b0537227573ae5da98f559e681401?s=96&d=mm&r=g","url":"https:\/\/secure.gravatar.com\/avatar\/8d331506e3c530b5ec4930c30a01ed8cc29b0537227573ae5da98f559e681401?s=96&d=mm&r=g","height":96,"width":96}},"publisher":{"@type":"Organization","name":"Smart Motoring","logo":{"@type":"ImageObject","@id":"https:\/\/smart-motoring.com\/wp-content\/uploads\/2024\/10\/smart-motoring_news_logo_g-e1765846726493.webp","url":"https:\/\/smart-motoring.com\/wp-content\/uploads\/2024\/10\/smart-motoring_news_logo_g-e1765846726493.webp","width":600,"height":60}},"image":{"@type":"ImageObject","@id":"https:\/\/smart-motoring.com\/wp-content\/uploads\/2016\/11\/feature-26.jpg","url":"https:\/\/smart-motoring.com\/wp-content\/uploads\/2016\/11\/feature-26.jpg","height":520,"width":1200},"url":"https:\/\/smart-motoring.com\/blog\/cant-trust-new-car-sales-figures\/","about":["BLOG"],"wordCount":629,"keywords":["consumer advice","new car","pre reg cars","smmt"],"articleBody":"As sure as day follows night, the first week of each new month sees the publication of Britain\u2019s new car registrations.These numbers – collated and reported by the Society of Motor Manufacturers and Traders (SMMT) – reveal how many new vehicles were registered in the previous month. They\u2019re important because they provide a vital insight into how the economy is performing, much like how high street retail data is viewed.However, new car registrations are frequently – and erroneously – reported as new car sales, but the clue is in the name, the data refers to the number of new cars that were registered – i.e. how many were given a registration plate.Happy ending not guaranteedThere\u2019s no hint to what actually happens to these cars after they\u2019re registered. In an ideal world, they\u2019d go to a loving owner and live a long, happy and purposeful life, and in most cases, that\u2019s probably true.However, a significant proportion of all new cars registered in the UK are \u2018pre-reg\u2019. This means the cars are registered by dealers to bloat sales figures to hit targets and make it look like they\u2019re doing better than they actually are.A recent investigation by the BBC suggested that up to one in five new cars are pre-reg, and motor industry analysts Cap HPI reckon it could be as many as 100,000 cars a month.These cars may very well end up being sold, but it\u2019s just as likely they won\u2019t, ending up in storage in a field with thousands of other unloved vehicles. It\u2019s enough to bring a tear to your eye, ain\u2019t it?BenefitsThe SMMT says the pre-reg approach allows dealers to manage stock efficiently, and car salesmen like it because they can sell the cars to consumers at discounts of 20 per cent and more, provided the car is kept off the road for 90 days.The dealership is happy because they risk losing monthly bonuses from the manufacturer if they fall short of targets.The manufacturer is happy because everyone thinks they\u2019re doing really well with all these cars \u2018sold\u2019.And the consumer is happy because they\u2019ve just bought what is essentially a brand new car at a knockdown price.DishonestySo what\u2019s the issue? Who\u2019s the victim?We\u2019ve already said that the figures are regularly cited as a bellwether for the economy but they\u2019re tough to believe when they\u2019re blatantly bloated and skewed every month.The SMMT acknowledges that pre-reg goes on but ask the body which day of the month typically has the most pre-reg cars and they\u2019ll straight-up refuse. That\u2019s because it is almost definitely the last day of the month, as dealers desperately scrape to hit those targets.Pre-reg can lead to cashflow problems too, according to one anonymous car dealer who told the BBC that he had become dependent on pre-registering cars due to such narrow profit margins.“You need to do it to get the bonuses but the more pre-reg you have, the harder it is to shift new cars,” he said. “It’s a vicious circle and can create cashflow problems.”There\u2019s also the issue of warranty. Once a car is registered, its warranty has been activated. So if a car is sat on a forecourt for six months, that\u2019s half a year warranty gone with just delivery mileage on the clock.That won\u2019t matter to many motorists, who hope they\u2019ll never need to cash in on their warranty anyway. The fact is that the new car industry isn\u2019t doing as well as you probably thought and in an age where people are used to being lied to, consumers deserve a little transparency."},{"@context":"https:\/\/schema.org\/","@type":"BreadcrumbList","itemListElement":[{"@type":"ListItem","position":1,"name":"Blog","item":"https:\/\/smart-motoring.com\/blog\/#breadcrumbitem"},{"@type":"ListItem","position":2,"name":"Truth behind new car sales figures","item":"https:\/\/smart-motoring.com\/blog\/cant-trust-new-car-sales-figures\/#breadcrumbitem"}]}]