Peter Vosper: Motability vehicle sales soar

Those of you who read my column regularly will not be surprised to find Motability sales are over 50% up in the first four months of the year and this equates to around 48,000 new car sales. At the same time, private sales have dropped by around 18% which equates to around 28,000 new car sales. Therefore, the reduction in private sales has not only been substituted by Motability sales but an additional 20,000 have been added to sales to individuals. Motability is the largest fleet operator in Europe but adds to the freedom and enjoyment of life for many drivers who would find it difficult to afford the piece of mind and flexibility and are able to choose from a comprehensive range of cars from many manufacturers. 

Manufacturers, dealers and finance providers all contribute to this system which now has a fleet of over 700,000 vehicles. Specialist vehicles are also adapted by specialist companies to ensure those who may be inhabited by the loss or incapacity of one or more limbs are also catered for which means their lives are far less restricted than they would be. 

There was more good news for the industry with the figures for used car sales in 2023 up 6.5%, reaching a five-year high of almost 2 million units. This year small economical cars dominated the top ten selling cars with only a single SUV in that group. This shows the effect of the energy crisis and the rise in prices and interest charges. The zero-emission sales of used cars grew by 71% as electric cars arrived in the marketplace and were seen to be a good buy. Overall, the volatility of the used car market of the last two years has disappeared as buyers returned and fleets replaced their cars, easing the lack of stocks. Some buyers are waiting for interest rates to drop as well as a continuing fall in inflation but the reductions in national insurance payments and the rise in minimum pay has brought new entrants to the market. 

The new van market recorded Its best growth for three years in April with light commercial vehicles up 5.4% marking the 16th consecutive month of growth. This supports the growth figures released by the government showing Britain is no longer in recession and business confidence is returning. 

Electric-powered vans are becoming more relevant and cost-saving for local journeys as more councils consider clean-air zones and businesses deal with increased costs for high-emission vehicles. Hospitals require deliveries to be made by electric vehicles along with government-supplying businesses. Electric van sales are the only way some manufacturers can meet their 22% electric share of sales objective.