Motoring ahead: PPI payouts fuel jump in sales of new cars

Car sales have roared to their highest level for more than five years as PPI mis-selling claims fuel a boom in consumer spending.

Over 400,000 new cars were sold in September, with more than one in seven, including the Mini built in the UK, the Society of Motor Manufacturers and Traders said today. 

Sales of the September 63 plate  were 12.1% higher than in the same period last year, and the most since March 2008.

However, the figure of 403,136 cars registered last month is lower than the average of 416,000 sold each September before the credit crunch.

Chief executive Mike Hawes said: “The UK car market has had a fantastic September and reflects growing confidence across the economy. People have been attracted by new deals and a number of customers have benefited from PPI mis-selling claims.”

Ford remains the UK’s top-selling make with 20,600 Fiestas sold in September. The Vauxhall’s Corsa is in second place.

“This is the 19th consecutive month of steady growth and, with fleet and business demand still to reach  pre-recession levels, we believe  the performance to be sustainable,” Hawes added.