Glass’s Market Intelligence Service reckons the UK general election this May could have a positive impact on new car sales which have been trending down so far this year.
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“Analysis of the new car market over the past 50 years indicates that there was an increase in registrations in all but two of the 13 years in which a general election was called. In six of these years, the growth in sales set a new record,” Glass’s said.
“In addition, with just one exception, the actual months in which the last six elections took place saw a distinct uplift in new car sales. The various historical precedents therefore suggest that a sales boost, albeit a temporary one, could be a distinct possibility in 2005.”
Glass’s said that if the pattern of UK new car sales growth during election years is repeated in 2005, it would be less of a negative result than that predicted by most industry analysts, who forecast a modest fall in registrations compared to last year.
“Following the 2003 new car sales peak we saw a slight decline during 2004,” said a spokesman. “Most industry analysts predict a further decline for 2005 but, if history is anything to go by, this year’s general election could possibly make some of the industry’s more negative forecasts look slightly pessimistic.”
