According to the Barclays Motor Dealer Review, automotive sales have exceeded expectations so far this year despite difficult economic conditions.

As a result, the bank has revised its forecast of new car sales in 2007 upwards to 2.4 million units, representing a 2.4 per cent rise on last year. Barclays warned that it expected sales to ease next year when interest rate rises began to take effect and growth in the wider economy slowed. Meanwhile, Barclays also reported that new car prices rose by 1.6 per cent in October compared with the same month a year earlier. In contrast used car prices fell during the month with prices down 3.6 per cent compared with October 2006.