A survey carried out by HPI, has highlighted that customers are becoming increasingly aware of CO2 emissions, and that this is undoubtedly impacting on their buying decisions. HPI, who have been carrying out vehicle history checks since 1938, undertook the research among car dealers in the UK. Director of automotive at HPI, Daniel Burgess said, “Our survey results show that car dealers are witnessing a change in car buyers’ attitudes towards making greener choices”.

A staggering 93% of dealers surveyed, believe that today’s car buyers are more concerned with a vehicle’s emissions than they were a few years ago. The survey revealed a significant change in consumers buying behaviour over the last 3 years.  In 2010, 71% of dealers confirmed emission did influence buyers when purchasing a car, compared to just 45%, in 2007.

Burgess goes on to explain ‘Consumers are just as concerned about reducing their motoring costs, making this a key factor when considering which vehicle to buy next. It is clear that consumers are conscious of making real savings on the overall costs associated with owning a car and this means that greener motoring makes economic sense as well as eco sense”.

And buyers certainly do appear to be actively enquiring about CO2 emissions, with 59% of dealers in 2010 reporting that buyers are asking the CO2 questions, compared to just 44% in 2007. As a result of the increased interest and awareness among consumers, HPI have confirmed that many dealers are now opting to download the HPI CO2 Certificate for their customers.  This gives customers clear, concise, at-a-glance information on a vehicles running costs, environmental performance and fuel consumption. Consumers want to be able to make sound, informed decisions to enable them to reduce their carbon emissions and motoring costs, and the CO2 certificate is making this possible.

It is safe to assume that increasing fuel prices have contributed towards the growing trend in buying eco friendly cars.  The survey showed there has been a 54% increase in awareness among consumers of vehicles with lower tax bands and a 29% increase in consumers focus on bring down motoring costs, compared to 3 years ago.

Think Insurance, the specialist motor trade insurance provider, would urge car dealers and motor traders to recognise this shift in buyer behaviour and to respond accordingly. Saving money and the environment has never been so prevalent as it is today.

Last week saw Chancellor, George Osbourne, deliver the 2011 Budget. Newspapers have been filled with articles and stories about how the British public will be affected by the changes.

With this in mind, Think Insurance, the specialist motor trade insurance provider, have pulled out the key points that affect the motor trade industry and commented on how they feel the industry might be impacted.

• Fuel duty to be dropped by 1p

• Fuel duty escalator to be cancelled

• Increase in Income Tax Relief for small businesses from 20% to 30%

• Reduction of Corporation Tax by 2% in April, and will continue to fall by 1% for 3 years

• £1,000 rise in personal tax allowance to £8,105, from 2012

• £100m to fund pothole work on Britain’s roads

• Vehicle excise duty to rise by inflation only. Rates for HGV frozen

• 100,000 new work experience places and 40,000 apprenticeships

Garrath Hussey, CEO of Think Insurance, comments on the 2011 Budget and how he feels motor traders will be impacted. “We welcome many of the changes announced yesterday. Perhaps the most notable and relevant change for motor traders is the drop in fuel prices. Even such a small sum will undoubtedly help motorists and car dealerships across the country”.

Hussey continues “The support and funding being focused on apprenticeships should also have a positive impact on many businesses in the motoring retail sector, and will of course help improve the unemployment rates in this country overall”. Hussey concludes “Of course we can’t expect things to change dramatically overnight, but we can at least feel reassured that we are moving in the right direction, and that the government seems to be supporting UK businesses. This can only be positive for motor traders and other businesses in our industry”.

At Think Insurance we came across this interesting survey and wanted to share it with all of our Motor Trader customers.

Research carried out by Warranty Direct, has revealed that the most reliable used car is the Peugeot 207. With just 6% of them breaking down in an average year, that’s 1 in 17, it’s no wonder Peugeot have bagged themselves this accolade! The study analysed more than 20,000 stats on European cars, aged between three and seven years, measuring the overall running cost and reliability – including rate of failure, average mileage, age and cost of repair.

Coming in at second place is the Fiat Panda, with just 14% of owners having to pay for repairs. Not content with bagging first place, Peugeot have also secured themselves third place in the same poll! The Peugeot 206 not only requires very little attention, but it is also cheap to fix if it does go wrong, with an average repair coming in at just £185.

Duncan McClure Fisher from Warranty Direct said “Some people might be surprised to see Fiat and Peugeot claiming the top three positions, but the data doesn’t lie – these cars are very dependable – It’s perhaps less surprising to see a couple of VW’s in the top 10”. He goes on to explain, “Running a car is a costly business, particularly when a car moves into its fourth and fifth year, when most cars leave the protection of a manufacturer warranty. Anything that gives a little extra peace of mind, like getting further warranty cover or simply doing research about the car you’re buying, is worthwhile”.

At the other end of the scale, 47% of the Mercedes SL models covered by Warranty Direct recorded a fault, making it the least reliable car, with 36 per cent of those problems suspension-related. The Renault Clio is the cheapest used car to repair, costing an average £173, whilethe most expensive single claim among the bottom five cars was £7,239 for a BMW 7 Series fault.

Top 10 most reliable European cars

Reliability Index Rating / Incident Rate / Average Repair Cost (£)

1. Peugeot 207 (2006 – ): 22 / 6% / £331.92

2. Fiat Panda (2004 – ): 28 / 14% / £195.95

3. Peugeot 206 CC (2000 – 2007): 32 / 17% /£185.40

4. Volkswagen Polo (2005 – ): 35 / 18% / £190.48

5. Renault Clio (2005 – ): 36 / 21% / £173.40

6. Volkswagen Beetle (1999 – ): 39 / 20% / £198.25

7 Smart Forfour (2004 – 2007): 48 / 25% / £194.67

8. Volvo S40 (2004 – ): 51 / 23% / £223.13

9. Peugeot 107 (2005 – ): 54 / 21% / £248.46

10. Mercedes SLK (1996 – 2004): 55 / 18% / £296.73

Top 5 least reliable European cars

Reliability Index Rating / Incident Rate / Average Repair Cost (£)

1. Mercedes SL (2002 – ): 349 / 47% / £742.10

2. Range Rover (2002 – ): 264 / 53% / £499.43

3. Renault Espace (2002 – ): 264 / 54% / £491.26

4. Mercedes S-Class (2006 – ): 239 / 47% / £505.22

5. BMW 7 Series (2001 – 2008): 232 / 45% / £514.40

This information was brought to you in conjunction with the specialist motor trade insurance provider, Think Insurance.

The motoring industry, among others, is likely to be hit following the tragic earthquake and tsunami that hit Japan earlier this month, on the 11th March 2011. The cost to human life as a result of the devastation is immense and the disaster is said to be impacting on literally millions of people and businesses globally. Japan is home to many of the car manufacturers such as Honda, Nissan and Toyota.

Many roads, air and sea ports in Japan have been destroyed as the earthquake and tsunami left a massive trail of destruction behind it. As a result, the manufacturing of car parts has had to grind to a halt, and this could continue be the case for many months, or perhaps even years to come.

Toyota and Honda have put production on hold until the 27th March at least, which will have the biggest impact on the Honda Accord, Jazz Hybrid and the Toyota Prius. Toyota are said to have lost production of 140,000 cars since the earthquake. High stock levels of some cars will certainly help with the damage limitation. Toyota is estimated to have 6 weeks supply of new vehicles, and Nissan shipped 350 of its new electric car, the Leaf, to the UK before the disaster struck Japan.

However, both manufacturers admit they are expecting to face problems in the following months. With the potential shortage of new vehicles coming into the country, dealers and motor traders could expect to see nearly new cars holding their value, while it is predicted that new car prices are likely to rise due to the lack of supply. This will undoubtedly result in dealerships removing promotions and special offers for customers in response to the limited stock.

Ian Fletcher, senior analyst at IHS Global Insight, explains: “Although there are currently limited details about the extent to which supply levels will be affected, dealerships will stop offering discounts on the list price for models in high-demand”. While it is too early to determine the extent to which the motor industry will be affected, dealerships and motor traders can expect to see the knock on effect for some time to come.

This information was brought to you in conjunction with the specialist motor trader insurance provider Think Insurance

Think Insurance, the specialist motor trader insurance broker; brings this story to you from across the pond. We loved this Marketing Campaign from an American car dealer. A car dealership in Florida launched a clever marketing campaign this month – If it rains more than one inch on the morning of 8th April 2011, any customer who purchased a car from them in March will get it for free!

Jeff King, General Manager of the dealership explains why he came up with the idea “Every car dealer advertises the same way. They open up their mouth and they start screaming at people. In this market that we’re in, when you do that, people just don’t come in the way they used to ”.

He goes on to say “This is a way for us to cut through the clutter, it’s a way to start having conversations with people. People come up to us now and say, ‘Tell me about the deal’. We get to have a conversation”. And it seems to be working, King says the dealership is having plenty of conversations! “We’re off to our best month ever, we’ll probably do close to 200 cars this month”.

You might think King is keeping his fingers crossed for sun on the morning of the 8th April, but he has confirmed he is praying for rain! The clever dealership took out an insurance policy against the rainy day – much like “hole in one insurance” at golf courses. King has checked weather forecasts and they are predicting thundery weather. “So we’ve got our fingers crossed,” said King.

A local weatherman says despite the forecast predicting rain, he doesn’t think the dealership or the insurance company are taking a big risk. “Nothing is impossible, but I would say the odds are working in the house’s favour at this point,” explained Steve Smith, morning meteorologist on First Coast News. “April tends to be a drier month,” Smith said. “We are moving toward the time of the year where the fronts are becoming less and less of a factor. I think they are making a safe bet at this point”.

Smith went as far as saying that he thinks the dealership and insurance company have “got it in the bag,” but a freak storm could yield more than an inch of rain on 8th April – like it did five years ago. So, if the weather station reports more than one inch of rain between 6.00am and 11.59am on the morning of the 8th April, King should expect to see his more recent customers celebrating!

Think Insurance applaud this innovative marketing campaign, but are warning any UK motor traders who might be thinking of following suit.… they’re not called April Showers for nothing!

Europe’s No.1 Vehicle Remarketing Company, British Car Auctions (BCA), is warning that higher than expected volumes of ex-fleet cars arriving on the market will undoubtedly put pressure on prices this month. Director of communications at BCA, Tony Gannon, explains “Although it is early days, we would expect to see de-fleet volumes ramp up in late March and this will possibly result in some more price pressure in the fleet and lease used car sector”.

Fleet lease values fell 2.4% in February, according to the latest Pulse report. However, overall used car values for the same month were the highest they have been for more than a year, since December 2009. The nearly new sector saw values rise 12.5% – an average of £2,208.00. The BCA claim model-mix was largely responsible for the increase, with sold volumes of higher value premium cars experiencing a rise of nearly 20%, and the number of volume models sold, falling by approximately 8%.

Tony Gannon, BCA said, “The overall economic picture remains gloomy however, and consumer confidence is fairly low.” He goes on to say “High fuel prices are contributing to rising inflation, as well as the knock-on affect of the VAT increase – it all means motorists are likely to be looking to reduce their costs going forward.”

Finally, Tony Gannon advises, “Vendor strategy is going to be increasingly important in the weeks ahead. Easter and the Royal wedding both fall into the same week at the end of April and it is quite possible that the wholesale market will soften around that time. Sellers should ensure they make the most of the demand in the intervening weeks.”

Think Insurance, the motor trader insurance specialists, fully support this advice and urge Motor Traders to really maximise opportunities in the busier periods, in order to survive throughout the predicted quieter times.

Fear mounts among second hand motor traders as word spreads of Tesco’s plans to enter the used car industry. It is thought that the supermarket giant Tesco has plans to launch a used car website later this year.

According to trade insiders, Tesco has been working on this project for a year now and has secured the website domain name www.tescocars.com. April is the month being bandied around as the launch and when we could expect to see them entering the market. Editor of Car Dealer Magazine James Baggott, said: “This could be brilliant news for buyers as it’s likely the supermarket will price its stock aggressively and undercut many dealerships.”

While this might be good news for buyers, it will really hit small businesses and dealerships, many of which worry about competing with the giant that is Tesco. Chris Green, founder and director of website Motoring.co.uk, said: “This worries me. In a year when many businesses are struggling to survive and looking to the secondhand market to keep them going, a big player like Tesco entering the market could send them under.”

This isn’t Tesco’s first foray into the world of motors – the supermarket has been selling motor insurance and car loans for some time now. Some feel the cars will literally just be a vehicle for Tesco to sell their financial products. One trader said: “It’s likely Tesco will make very little on each sale but instead use itto make revenue from its financial arm.”

Sources have revealed that the chain has been in secret talks with Motability, the country’s largest ex-fleet car provider. It is this news that is perhaps the most worrying for motor traders and likely to cause ructions in the industry. Motability Operations, the groups not-for-profit division, work with car makers to help disabled drivers to purchase their own vehicles at a discounted rate. The used cars that come back through Motability are then sold on through their extensive links with 5,000 car dealerships with some going to independent garages or auctions. Used car dealers are concerned that Tesco’s plans will result in a shortage of used motors. It is thought that Tesco would need at least 100,000 used cars for the business to be a success.

Motability has privately admitted that they have been in talks with Tesco, but have officially stated they would not comment on new partners. They go on to say, “Over recent years, Motability Operations has considered potential partners who could offer an additional outlet and we will continue to do so, although we are unable to comment on ongoing discussions with any specific organisation.” “Motability Operations reviews any such proposal with the same scrutiny as it would select any supplier, looking to ensure that its suitability is matched to the best interests of the business and our customers.”

It is believed that the planned venture will sell ex-fleet cars from one to five years old, using the established website Autoquake.com as a model. Autoquake offers loans, warranties, insurance and breakdown cover, as well as part exchange on vehicles. Selling secondhand vehicles would certainly be a first for a supermarket and would add to Tesco’s ever expanding list of businesses, which currently include tyres, cash for gold, beauty salons, banking, garden centres, film making, clothes and mobile phones. And lets not forget… groceries!

Tesco refused to comment about any plans to sell used cars and a spokesman said the reports were only “speculation”.

Think Insurance can provide you with a cheap insurance quote today, if you are looking for motor trade, taxi, home or commercial insurance then contact a Think team member now.

According to the BBC, German carmaker Audi saw a sharp rise in their profits in 2010 – partly thanks to the growth in sales of luxury cars in China and the US.

Net profit for last year is reported to have come in at €2.59bn (£2.23bn; $3.61bn), up by 50% on the €1.3bn made in 2009. Revenue also rose by 19% to 35.4bn. Audi, the world’s third largest luxury carmaker behind BMW and Mercedes, plans to increase sales by 10% this year in a bid to overtake BMW (who currently hold the top position).

Audi Chief Executive Rupert Stadler says, “The prospects for 2011 are good.” Audi plan to expand into emerging markets such as India and Russia, as well as continuing growth in China and the US. Volkswagen, who own Audi, have said they want to overtake Toyota as the world’s biggest carmaker.

Think Insurance can provide you with a cheap insurance quote today. If you are looking for motor trade, taxi, home or commercial insurance then contact a Think team member now.

An increase in demand for the most fuel efficient used cars has resulted in a price increase, confirms Europe’s No.1 Vehicle Remarketing Company, British Car Auctions (BCA). It is thought that the main reason for the price rise is due to a shortage of this type of vehicle in the market.

“The demand is there, but supply is a major issue for anyone wanting to buy the most fuel efficient used vehicles” says Tim Naylor, BCA. He goes on to say “A quick look at our online stock locator on just one day found only 78 vehicles for sale throughout our nationwide network of auctions that matched the Fuel-Economy.co.uk list of most fuel efficient cars. This is fairly representative of the current low availability of these vehicles as used cars and compares to the 12,000 plus vehicles BCA typically has consigned for sale on any given day.”

With fuel prices rising again last month, there appears to be no respite for motorists. The latest fuel index indicates that the latest rise is the largest seen in recent times, and this comes despite Government lobbying to slow down the rises. Unsurprisingly, the continued rise in fuel prices looks set to bring about a change in consumer attitudes towards eco-cars.

Drivers will undoubtedly begin to look at the cost benefits of fuel efficient vehicles, combined with lower CO2 emissions. A director of nextgreencar.com claims that the increased interest in eco vehicles is also due to the recession.

Think Insurance can provide you with a cheap insurance quote today. If you are looking for motor trade, home, taxi or commercial insurance then contact one of the Think team now.