Following latest SMMT new car figures that saw registrations up 3.8% in November and 6.2% YtD, KPMG has outlined its predictions for the full year.

John Leech, head of automotive, said: “Manufacturers are maintaining their levels of incentives fuelled by the strength of Sterling and with an expected year end pre-registration push, we expect that 2.62 million cars will be sold in 2015, beating the 2.58 million record set in 2003.”

CAP also said that it is predicting new car sales are likely to exceed 2.6m in 2015, making it the biggest year on record. 

Philip Nothard, CAP consumer and retail editor, said: “2015 is set to be the biggest year for new vehicle registrations on record. We are predicting sales will exceed 2.6m vehicles, and while pre-registration has played a part in hitting this number, we are seeing a shift in the way we purchase a vehicle. The rise in PCP and a wide variety of leasing products means manufacturers are able to offer some eye-catching deals. 

“The UK car industry is coming to the end of one of its biggest years for a decade, exceeding pre-recession sales in 2008 and post-recession sales in 2014. Used vehicle sales are set to hit 7.5m, as strong demand continues to drive the market.”

He added: “As confidence extends into next year, it will be important to manage the used vehicle supply chain to protect residual values. Manufacturers are acutely aware that the ability to offer a good deal on the front end relies on maintaining residual values.”

CAP added that whilst it has reported a slide in used values over the last three months, it suggested prices are likely to stabilise in January as demand increases.