The news has recently been full of how the car market is floundering. There has been a 6 percent decrease in the amount of new cars sold in 2017 when compared to the previous year.
The reasons for this decrease extends to the government changing the amount of Vehicle Excise Duty that is payable on newly registered cars introduced in April 2017 and another reason is the perception of diesel cars have had an effect on the market with less being sold than in previous years. Compared to 2016 there has been a drop of 17 percent of the amount of new diesel cars being registered according to statistics from the Department of Transport (DoT).
Naturally, what this means is that as less cars are being replaced, the average age of a car on the road is increasing. According to the DoT the average age of a car is now believed to be 8.1 years old. The first time this number has been reached since 2000. Within the statistics made available, 17 percent of cars were over 13 years old. When broken down between petrol and diesel engines, the average age of a petrol engine was older at 9.1 years with diesel being a younger 6.6 years.
How to attain what these figures will mean to our yards and what is visible on our storage racks is yet to be seen. However, as there seems to be a willingness for drivers to maintain their cars longer and the average car age being older and usually out of warranty then as these cars start to fail there should be a surge in those searching for parts as maintenance for these vehicles continues.
Although there are more older cars on the road and less brand new vehicles, one other significant change was the amount of ULEVs (Ultra low emission vehicles) being purchased. In 2017 there was an increase of 27 percent of ULEVs on the road when compared to 2016 with a total of 53,000 being registered. This trend is showing that consumers are very much factoring in fuel types when purchasing new vehicles and the interest in ULEVs is very much on the rise. When mentioning earlier what our facilities will look like in the future, one thing for sure is that hybrids and EVs are sure to become dominant.