Car dealers have warned the government it needs to be clear about its car tax policies as motorists stop buying new cars.
The number of new car sales was down 6.1 per cent in June compared with last year, and the director of the National Franchised Dealers Association (NFDA) said Whitehall uncertainty was pushing sales figures down.
Sue Robinson said that the impending increase to vehicle excise duty, rising fuel costs and the current economic slow down is causing consumers to think twice before purchasing a new car.
She said: "Consumers still want to buy cars, but the current uncertainty is not conducive when thinking about making what is for many the second biggest purchase after buying a home."
Although car finance accounts for more than half of new car sales, and the numbers of people applying for car credit is on the increase, according to Motorpoint, Mrs Robinson said urgent action was needed.
She said the government need to urgently address the future cost of motoring by reducing interest rates, stabalising fuel costs and clarify its proposed vehicle excise duty increases.
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