Car Dealers report increasing demand to beat the VAT increase

Many car dealers are reporting an increase in forecourt demand during the past month, due to the impending VAT increase. In January 2011 the rate of VAT increases from 17.5% to 20% which will have a hefty impact on new car buyers. For example the increase in purchase price on a mid-range Ford Focus will be in excess of £500.

The more expensive the vehicle, the larger the increase in cost becomes if you wait until the new year to purchase your new car. This is driving demand for new cars, which is expected to continue to accelerate during the final two months of 2010. The VAT increase doesn't just effect consumers, but will also have far reaching effects on the Motor Trade, which has thus far been relatively resilient in the tough trading conditions since the start of the economic downturn. Whilst this rise in VAT brings in large sums for the Exchequer many Motor Traders have questioned the timing of the increase, just as many of the current spending cuts are beginning to bite.

If you are looking for cheaper Car Dealer Insurance, to help battle rising costs within your business, get a quote with iQuote insurance. We have access to the most competitive Motor Trade insurance schemes in the UK - saving you time and money.

Motor Traders need to prepare for the end of scrappage scheme

The governments scrappage scheme has been a victim of it’s own success and is expected to finish before the end of 2009, possibly as early as October. Although the scheme has seen vehicles sales increase and generated 150,000 new registrations; car dealers need to consider the strategy for new car sales within their business.

Car dealers who are pro-actively looking at ways to increase sales, should consider marketing to customers who recently purchased vehicles for after-sales servicing and marketing of customers in their existing database who purchased a vehicle over 2 years ago, for new vehicle sales. There will still be opportunities for strong income to dealers after the scrappage scheme is finished, but the motor trade industry as a whole will need to work harder to secure their share of the revenue.

iQuote Motor Trade would like to assist car dealers in the current climate. We guarantee to save you money on Motor Trade Insurance, if you have received a Motor Trade Quote from one of our competitors, we will beat your quote and deliver you a cheaper traders policy.

UK car sales up for the first time in 2009

For the first time in 2009, the monthly car sales figures are up on the previous year. In July there was a 2 percent increase compared to figures for July last year. This is widely acknowledged to be a direct result of the governments vehicle scrappage scheme; which has made a more buoyant market for car dealers.

However within the coming months the money for the scrappage scheme is expected to run out. The motor trade is extremely keen for the scheme to continue, as this has provided much needed relief in the industry. The June figures were the smallest fall of the year, now with the increase in July it is hoped that a continue of the scheme will see the industry return to a healthier position.

Here at iQuote Insurance, we are keen to assist car dealers in the current economic conditions, so if you need traders insurance - we guarantee to beat your existing motor trade insurance quote. Visit us online and we can provide a motor trade policy for road risk insurance or combined motor trade.

Motor Traders switch to online marketing

In a recent survey of two hundred car dealers in the UK, the top 3 marketing methods are all internet generated (Promotion of vehicles on their own websites, being coming out top). There has been a pronounced shift away from traditional media to get customers buying cars.

Car dealers have also confirmed the success of the vehicle scrappage scheme. With 53% of dealers experiencing improved sales compared to the first half of 2008. The improvement of car sales is even more pronounced for used vehicles, with 75% of dealers seeing improvements in this sector.

This improvement is all the more remarkable, with the reduction in marketing spend; 77% of dealers have reduced their marketing budgets. The Traders that are doing well in the current market, are those who have switched their focus to small hatchbacks, superminis and family cars. Those who are struggling have a business model based on 4x4’s or luxury cars as many buyers are carefully considering their choice of vehicle.

In addition to marketing online, their are further savings by shopping around for Car Dealer insurance online. iQuote insurance can provide cheap motor trade insurance and expert advice on your traders policy. To find out more call iQuote on: 0845 434 7819

Vehicle Scrappage boosts sales of Hyundai

The company which has benefited from increased sales is Hyundai, since the scrappage scheme was introduced their UK sales have increased to over 11,000 vehicles. This volume is more than in the previous four months and is bucking the trend of depressed figures elsewhere in the Motor Trade.

For car dealers the scrappage scheme is providing mixed fortunes, due to the weakness of the pound against other currencies (particularly the Euro). The biggest concern is that small cars will just not be available as manufacturers divert the supply of vehicles to schemes elsewhere, with a more favourable exchange rate.

However even for car dealers experiencing a lull, there is some positive news with low cost traders insurance available for combined cover or road risks only from iQuote Insurance. We guarantee to beat any genuine motor trade quote and will provide expert advice and a traders insurance policy tailored to your business.

To find out more about the savings available under the scrappage scheme visit the Hyundai website.

Car Dealers concerned as new car production falls

Despite the introduction of the vehicle scrappage scheme new car production has fallen by 43% in May 2009. The first five month of the year have seen new car production fall by 54%, the figures for commercial vehicles see an even sharper decline of 65% for the year.

However the scrappage scheme was not implemented until mid-may, the figures for June should provide a more accurate picture of the market. Due to the changeable conditions in the new car market, the production ouput of firms is heavily influenced by sales on Car Dealer forecourts.

The Motor Trade and in particular the commercial sector is experiencing the worst downturn for many years. However to assist Car dealers and Motor traders, iQuote Insurance are offering a saving of 40% off your Traders Insurance.

Visit the iQuote Motor Trade website for a motor trade quote to get your ‘credit crunch’ saving on a traders policy.

Budget confirms cash back for your old banger!

Welcome news for car dealers and motor traders in yesterday’s UK budget, the government has introduced the much touted vehicle scrapping scheme. Starting in May motorists who own a car that is more than 10 years old will receive £2,000 to trade their car in for a new vehicle.

Typically new cars are cleaner, more efficient and emit less CO2 than older cars. This move has a double benefit for the environment and to ease the economic situation in the hard pressed motor trade industry.

Motor Traders are encouraged by the new scheme, if the scheme has the same effect as the similar arrangement in Germany it will bring much needed impetus to the new car market.

For Motor Traders whether you buy, sell, service or valet vehicles we can get you a cheaper trader insurance policy. To get immediate cover and the option of ‘pay as you go’ on your motor trade policy - visit iQuote Insurance for your Motor Trade quote.

UK to become centre for Electric car production

Nissan and GM are on the verge of committing to build ground breaking electric cars in the UK. The zero emissions vehicles would save existing jobs and could help create additional jobs, if the current trends towards electric vehicles continues.

This is positive news for the Motor Trade in this country, who have seen reduced footfall through their showrooms and slow vehicle sales in 2009.

Nissan are currently assessing their Sunderland factory as a site for manufacture of 50,000 electric cars per year. The companies goal is to become the world leaders in high volume electric car production. Whilst General Motors are considering manufacturing their latest electric cars on Merseyside.

For Car Dealers, whether you sell petrol, diesel, hybrid or electric vehicles - a Motor Trade Insurance policy with iQuote Insurance could save you money.

Motor Trade backlog of 100,000 cars

Over 100,000 cars are ‘mothballed’ at one single dockyard due to lack of demand. As new car sales have fallen through the floor the motor trade has been forced to stockpile vehicles and cease production on a temporary basis.

The dockyard in Bristol is estimated to have £1billion of stock awaiting demand. This is a scene which is echoed throughout Europe. A lack of demand from car dealers has left all the Motor Trade in crisis. However a welcome rest bite at this time of need is cheap Motor Trade Insurance from iQuote Insurance. In a move designed to assist hard pressed traders if you get a better motor trade quote elsewhere, they will beat your quote.

In the stockpile of vehicles are unsold Toyotas, Hondas, Vauxhalls and Mitsubishis imported from overseas. However the vehicles are stockpiled for anything up to four months before there is enough demand to shift the backlog of motors. Managers said that stock is at the highest level for many years.

RMIF call on Government to action vehicle scrapping scheme

The Retail Motor Industry Federation has again called on the Government to implement a scheme which gives an incentive for owners to scrap vehicles over 9 years old. This has a dual benefit, both environmental and economic - typically newer vehicles produce less emissions, so a scheme designed to take older cars off the road will have a beneficial impact for the environment. The scheme would also bring renewed impetus to the ailing Motor Trade

The potential scheme has been welcomed by Motor Traders who are struggling in the uncertain economic climate. iQuote Insurance have also extended a hand to struggling Motor Traders to beat the credit crunch. Until the end of March there is a 10% discount on any Motor Trade Insurance Policy.

When a similar vehicle scrapping scheme was introduced in Germany the government offered €2,500 to motorists to scrap older vehicles. This has kick started the car sales market, with a 300,000 unit increase expected in 2009 as a direct result of the scheme. Before the move in Germany sales were predicted to fall by 10%, so a 300,000 increase would be a significant achievement.

Within the last week there have been discussions both within Government and in the House of Lords. iQuote Insurance are keen to extend our support to the growing swell of voices in support of this scheme. This scheme can deliver benefits to the environment and to the Motor Trade industry and should become legislation as soon as possible. Any delay will have an impact on the long term prospects of the industry as a whole.

Credit Crunch savings for UK motorists

Due to the fall in sales, nearly every car company is offering huge discounts across the range for new vehicles. Traditionally March is the biggest month for sales, with the first registration change of the year, however this year sales are expected to be over 30% down on last year.

Conservative estimates from the motor trade report £750 million pounds of savings on new cars in the UK. If anyone has the available cash to buy a new car, now is the time to purchase a vehicle. Market conditions are forcing dealers to offer unbelievable discounts on new vehicles to make way for 09’ stock. To help hard pressed dealers iQuote Insurance are offering up to 50% off motor trade insurance, which is much needed assistance in the current economic climate.

Currently some car dealers are offering £10,000 or more off the list price of new vehicles to clear existing stock. The biggest volume cars in the market are Vauxhalls which is unsurprising as on certain models of the Insignia and Tigra you can get a £5K discount.

The key to getting the right deal from your car dealer is to haggle over the price, options list and other free extras. For those with cash to splash it’s a buyers market, so push for sat nav, air con and an extended warrantee. Also make sure you get a price online before you visit the showroom, if you know the car you want - and what you should be paying, the dealer will want to offer you the deal to clinch that sale.

So remember if you have the money, now is the time to buy a new car with a huge discount and the extras you want thrown in!

Car Dealers losing out on servicing income

In the tough economic climate within the Motor Trade industry the revenue that can be generated through vehicle servicing is a larger proportion of overall income. Within a climate of falling sales this income is of increasing importance.

Only about 30% of owners return their vehicle to the dealer where the purchased was made for servicing. Most owners choose their local garage or a franchised dealer for their make of vehicle to carry out servicing and repairs.

For motor traders and dealer to tap into this sector of the market, they must deliver on good workmanship and value for money. However as long as these key factors are delivered within the service - there is the potential to increase earnings from servicing and repair work to help weather the current credit crunch.

For cost conscious car dealers of any size a motor trade insurance policy with iQuote will help to reduce your overheads. Motor trade policies can be provided for road risk insurance or combined cover and you will receive a traders policy tailored to your needs.