Sales of new and used cars fell by 13% in a “conflicting” January, when compared to the same month last year.

Data from lead management firm iTrackLeads shows that the number of enquiries for new and used cars remained high during the month, but sales and handovers declined sharply.

Adrian Favill, director of iTrackLEADS, said: “January presents some conflicting signals. While the number of enquiries and test drives remained strong, despite some well-publicised fears about the economy, the number of sales and handovers dropped markedly.

“While the country is facing economic uncertainty, it’s essential that dealers remain proactive when following up enquiries and moving customers through the sales process. It’s likely that the number of lost sales, or customers falling out of the sales process, will increase over the coming months.”

The study sampled data from 300 dealers nationwide and showed test drives only declined five per cent, but vehicle handovers fell 30%.

Demand from car buyers is said to be on a “downward trend” after retailers experienced declining sales leads in December. Last month, iTrackLeads revealed the number of enquiries made to UK car retailers fell by 10.3% in December against the same month in 2021.

Test drives declined by 7% and sales of new and used vehicles by 13%.

Data published by the Society of Motor Manufacturers and Traders (SMMT), in January, showed a 2% decline in UK new car registrations last year to 1.61m units. The sector remains around 700,000 units down on pre-COVID levels.