Motor Trade reports 4x4 values rising fast

Car Dealers are currently trying to satisfy demand within the used car sector for 4x4's. This is largely due to the poor weather conditions and potential for further extreme weather. The increase in demand and prices for SUV's continues unabated despite the increase in fuel prices to record levels.

At the beginning of 2011, 4x4 prices were increasingly faster than other sector of the used vehicle market. The fuel prices are having a limited impact in this area, because Diesel vehicles are outperforming their Petrol counterparts with the highest prices.

Should there be a further spell of bad weather the demand is expected to peak even further than current levels. Therefore dealers are finding it increasingly hard to satisfy customer demand for 4x4's despite increased fuel costs.

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Car Dealers should focus on customer relationships

Freely available pricing information available to consumers online for car prices and servicing costs is driving down Motor Trade profits. To maintain profitable businesses many dealers are investing in improving relationships with their customers.

Typically the increasing reliability reduced frequency of servicing on newer cars, effects the number of opportunities Motor Traders have to interact with their customers and the income streams for Motor Trade businesses.

To keep regular customer contact, many car dealers are increasing spend on IT systems, marketing and staff training. The increased spend is focussed on keeping a business relationship with the customer after the initial vehicle purchase.

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Car Dealers launch VAT saving offers

To help encourage demand within the Motor Trade during the traditionally quiet first quarter, some manufacturers and car dealers are offering to absorb the VAT rise. When dealers opened for business they and their customers faced an increase in VAT to 20%, the highest rate since the introduction of VAT within the UK.

Already in 2011 Seat and Subaru have announced deals to absorb the cost of the VAT rise, when purchasing new vehicles. Many car dealers will be watching to see if this provides a significant boost to sales and may well follow suit.

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