Every month you have read the motor trade news stories to find doom and gloom, the economic climate has taken its toll on the motoring industry which has led to pessimism throughout the industry from workshops to dealerships.
This year the news seems to be improving, with interesting stories and articles giving us some optimism as we struggle to recover from a nasty recession.
There appears to be a shortage of ex-fleet vehicles at auction, this has impacted the price for buyers who are buying vehicles for their customers. These ex-fleet cars have reduced in numbers of about twenty per cent and have increased in price at auction in the past couple of weeks.
GMAC and MG Motors have signed a deal for financing in the UK. GMAC currently provides finance for Chevrolet, SsangYong and Vauxhall in the UK and now will be handling all the MG finance too.
Kwik-Fit in Maldon had a shock recently when two of their employees took a customer’s porche for a drive without permission. Both men have received prison sentences after the death of an eight year old Essex boy. The car arrived at the shop for new tyres, but was too much to resist for the two employees who took it for a joyride, knocking over the boy who was crossing the road.
Dealers need to improve their online responses; it has been found that they are losing sales because they are too slow to respond to online requests for test drives and brochures. One in five buyers has reported that their requests for brochures and test drives haven’t had any response. We live in a technological era and these dealers will need to tighten their response times as the buyers are impatient and move on to another dealer when they haven’t had a response within a day or two.
VRA have found that many cars on Personal Contract Purchase (PCP) are clocking the cars to avoid paying penalties. The Personal Contract Purchase comes with a maximum mileage in the contract; the clients are going to correction companies before returning the vehicles in an attempt to avoid paying the penalty charges.
The new budget for 2012 which was announced the other week will increase green vehicles in the company sector. In order to control costs and reduce car tax, companies will take their carbon footprint into consideration.
While there is still some doom and gloom in the motor trade news this month, there does seem to be an improvement over the past few months, sales are improving and the budget will help companies reduce their costs even further.