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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!