The prediction comes from Miles Roberts, managing director of Southern Finance, before the Society of Motor Manufacturers and Traders releases its new car sales figures this week.
“Large levels of credit card debt seem to be taking their toll, leaving consumer confidence low. People are finally trying to make a dent on those debts, which means they have less disposable income, placing a new car very low down on the list of priorities.
“Rocketing fuel prices mean consumers are paying almost £1 per litre, which is doing nothing to encourage people back through showroom doors. This seems to be leaving dealers out in the cold as we head towards summer,” said Roberts.