As expected, April 2011 may well have been the toughest month yet for many car dealers and motor traders in the UK.
Figures released from CAP, a Market Analysis company, show that market values are down by 5% and this is suspected to be an underestimation with the reality for many expected to be much worse.
The unusually warm weather, combined with the Royal wedding and extra bank holidays did nothing to improve the situation in April. Demand has reached its lowest point in 10 years, and experts at Glass’ Guide are predicting further drops in June with no obvious signs of things picking up in the market.
The tough conditions can be put down to a number of key factors such as petrol prices reaching an all time high, inflation rises and the overwhelming pressure on people to watch what they spend, especially on luxury items.
Too many dealers have been experiencing empty showrooms with a reported lack of good quality vehicles to choose from. This combined with the fact many traders feel confused about who they should be purchasing cars for, and what they should be buying, makes for a difficult time.
But, there are two sides to every coin, and it would seem that these trying times for dealers has created a buyers market for the motorist. It would seem that second hand cars are the cheapest they have been for a number of years with bargains to be had for anyone in the market for one. Currently you could pick yourself up a Mini One, 51 plate with high mileage for an unbelievable £2,500, or if a BMW is more your thing, you could bag a 54 plate, 1 series for just £4,250.
So while it’s not all doom and gloom, it would seem only the consumers are winning at the moment, with many dealers and traders struggling to keep their heads above water.
At Think Insurance we are specialists in offering low cost, quality motor traders insurance policies. We want to do whatever we can to help dealers ride out this storm and we hope our great insurance deals go some way towards easing the burden.