6 February 2023
- Badge snobbery evaporates as buyers choose value marques over status symbols
- January new car registrations rise by 15% year-on-year as cheaper brands take hold of the top-10 best sellers list
- Battery electric vehicle (BEV) registrations represented 13% of new registrations in January – marginally below the average recorded for 2022
- 2023 could be the year in which EVs become more accessible for more consumers after price cuts by Tesla and improved finance offers by other brands
Badge snobbery could be a thing of the past as affordable brands dominated January’s sales charts and new car registrations grew by nearly 15%, says The Car Expert.
The trend for cheaper and greener vehicles which emerged last year saw MG secure two spots in the top ten and other value marques overshadow their prestige counterparts, with Vauxhall, Kia, Hyundai and Ford all featuring among the best sellers in January.
However, the latest data from the Society of Motor Manufacturers and Traders (SMMT) revealed a drop in private new car sales (4.3%), albeit a small one considering the ongoing squeeze on household budgets.
Fleet sales, meanwhile, surged again, recording a significant year-on-year uplift of nearly 37% fuelled improved supply and greater confidence.
The monthly statistics signify the best start to the year since January 2020, before the Covid-19 pandemic impacted the market. The results also represent the sixth successive month of growth.
Battery electric vehicle (BEV) registrations rose by nearly 20% year-on-year, achieving 13% of new registrations which was slightly below the average recorded for 2022.
However, after a record December in which it sold around 15,000 cars, Tesla’s alternative approach – which sees large peaks and troughs in sales across the year – skewed electric car results in January after it shifted just 600 units during the month.
Plug-in hybrid vehicles (PHEVs) recorded a 0.7% rise, although their share of the market fell to below 7%.
Stuart Masson, Editorial Director at The Car Expert, said: “We may be speaking too soon but it looks like badge snobbery could be on its way out. Consumers who would usually opt for a prestige model are looking elsewhere – they want value for money, not a status symbol.
“While buyers are increasingly unconcerned by the badge, the likes of MG, Dacia, Ford and the Korean brands are capitalising. And this desire to maximise value for money might translate to EVs soon as 2023 may be the year in which they finally become more accessible to more buyers.
“With Tesla recently slashing prices by upwards of £7,000 and brands like Vauxhall offering zero per cent finance deals on all of its models – including EVs – this will have an impact on the rest of the market, forcing other brands to reduce the cost of their electric vehicles. The used car market for EVs is also set to improve, with new car prices dropping and more used EVs available second hand, there will be greater supply.”
With buoyant fleet sales yet again, this should mean that supply issues continue to ease, meaning reduced waiting times and better new car deals as well as lower used car prices later in 2023.
For expert and impartial advice relating to car finance or tips for purchasing a used vehicle, please visit: www.thecarexpert.co.uk/
The Car Expert
Founded in 2011, The Car Expert is the UK’s most comprehensive automotive consumer advice site. With an audience of over two million readers a year, The Car Expert provides independent and impartial advice on every aspect of buying, financing, owning, and selling new or used vehicles.
The Rotten Tomatoes equivalent for the automotive world, The Car Expert consolidates reviews from 30 of the UK’s top automotive websites to create the Expert Rating Index. Bringing together science and data analysis, the index calculates a weighted average to give an aggregated score – Expert Rating – that is comparable across different brands and models.
The Expert Rating Index factors in the age of each review, so that newer reviews carry more weight than older reviews. It also breaks down the complex web of different scoring systems that various websites use in their reviews.
The Car Expert has logged over 14,000 reviews covering more than 400 cars and over 50 manufacturers, with its Expert Rating Index now trusted as the gold standard for rating and ranking new cars in the UK.