With car salesmen and dealers forming a large part of the client base for the motor trade insurance industry, it is always good for brokers and insurers to know what is going on in the car sales market. Information recently released with the latest SMMT report on new car registrations for 2010 has shown that it was without doubt an up and down year for traders.
The total figures given by the SMMT for new cars show that there were 2,030,846 sales throughout the year, which equates to an overall increase of just under 2%. However, this figure is still one of the lowest of the last 10 years. The sales totals for the first and second 6 months were shown as ”volumes up 19.9% in the first half of the year, but falling 13.8% in the second half”. This is clearly a large swing and the biggest reason for this was the withdrawal of the government’s scrappage scheme, which equated to 100,000 sales alone. One area that did show a healthy increase is that of the fleet vehicle sales which increased by just over 10% for the whole year.
While the overall increase is clearly a healthy indication of the market starting to find its feet again, it remains to be seen how 2011 will fair for people within the industry. The SMMT have predicted that sales will drop by 5% during the coming year so it may well turn out to be another tough 12 months.
Decreased sales can only highlight the importance of making sure that the other areas of your business are as cost efficient as possible. Making sure you have the right motor traders insurance policy could end up saving your business in the event of any claims needing to be made through the year.
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