New car sales in the UK fell by almost 39% during November compared to November 2007.
This adds to the dismal figures from the Society of Motor Manufacturers and Traders which shows year-to-date sales to be 10.7% lower at 2,023,104.
urgent action to ease access to credit and finance, both to support consumers and meet the cash-flow needs of the industry
The drop in car sales is a direct result of consumer confidence falling due to the current financial climate.
This news further confirms the reccesion as new car sales have now fallen for seven months in a row.
"November has been another difficult month for the motor industry and whilst some consumers may have delayed their purchases to take advantage of the recent VAT reductions, overall demand continues to fall, Paul Everitt, SMMT chief executive told the press.
Everitt went on to call for urgent action to ease access to credit and finance, both to support consumers and meet the cash-flow needs of the industry.
The SMMT figures also demonstrate that the biggest decline was in the private car sector, with registrations down 45.1% in November.
The annual fall was the biggest since June 1980, except for an anomiley in the 1999 sales figures due to the move to a twice yearly change in registration plate.