Motor Trade facing tough challenges in 2011

Figures for January 2011, indicate a tough trading climate for the Motor Trade during the coming year. The SMMT statistics recorded a fall of 11.5% in new car sales. Increasing unemployment, lack of available finance and increases in VAT and fuel prices are all effecting consumer confidence and personal budgets.

Motor Traders and manufacturers are providing incentives to buyers to help revive flagging sales. However most consumers are taking a cautious approach with job security proving a factor with large numbers of public and private sector workers.

Many Car Dealers are focusing their stock on smaller more efficient cars, to help with rising fuel costs, with prices currently at a record high. The early indicators for this year are that their is a marked downsizing in cars and engine size. Electric cars are also becoming more attractive to buyers as the costs of petrol and diesel continue to increase. However the range of the current crop of electric cars and the number of public charging points needs to increase before this becomes a viable alternative for most road users.

During the coming year, we can help with your Motor Trade insurance costs. Get a quote for your Traders insurance and save up to 40% off your current premium with iQuote. We can provide immediate cover and offer flexible payment options, contact us for your Traders Insurance Policy.

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.

Looking for low cost Motor Trade insurance to help reduce your operating costs? Get a Motor Trade insurance quote online and save 40% off your existing Traders Policy.

Top tips for Traders with iQuote Insurance

When you purchase a Traders Insurance policy, we are committed to providing you with the most competitive deal on your Traders policy. Because you are covering your livelihood and vehicle stock, you shouldn't purchase insurance cover purely on price. You should also consider the level of cover required and whether you require additional benefits such as premises or indemnity cover.

We have listed some handy tips designed to save you money on Motor Trade insurance:

• Make sure that any additional drivers you add to your Traders policy are over 25 years of age. Any drivers younger on the policy will result in a significant increase of your insurance premium.
• If you haven't got any No Claims Bonus in the Motor Trade, ask your insurance broker if you can 'mirror' your No Claims from a private car policy. This means you could still get generous discounts even though your No Claims has not been earned in the Trade.
• If you have the available funds, pay for your insurance in one payment at the inception of the policy. Although most brokers can finance your policy, you will pay more for your insurance in interest charges.
• Many policies will not cover high performance vehicles, within your Motor Trader insurance. If you need cover for a Subaru Impreza, Mitsubishi EVO or other high performance vehicles, you must notify your insurance broker or insurer. Otherwise you may unwittingly end up without cover in the event of a claim.
• Consider the amount of additional cover you require, by limiting the amount of premises cover or increasing the voluntary excess you are willing to pay, you can make large savings on the cost of your Motor Trade policy.

To find out more about our Motor Traders Insurance and how much you can save - Get a Motor Trade Quote with iQuote Insurance.

Car Dealers predict price increases in 2010

The Motor Trade is encouraging punters to buy cars before the year is out, to make huge savings on the price of a new car. There is an expected rise for new car prices of six percent, during the first three months of 2010. When this is then combined with the return to 17.5% VAT and a showroom tax, due to take effect in April - The cumulative effect is a substantial price rise on the forecourt next year.

Several manufacturers are launching deals which finish on December 31st 2009, which are being billed as ‘beat the VATman’. Other factors which may make buyers wary of purchasing cars in 2010, include the end of the scrappage scheme in February and the poor exchange rate of the pound against the euro.

All of these factors are an indicator of tough trading conditions to come for manufacturers and motor traders. However there is some good news with the cost of a traders insurance policy falling by up to 40% with iQuote Insurance. Get a Motor Trade insurance quote and find out how much you can save today.

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.

Motor Traders asked if scrappage should continue

The vehicle scrappage scheme has had a positive impact on new vehicle sales in the UK. Although due to the investment required to fund the scheme in discounts there have been mixed reactions from manufacturers and car dealers. The Retail Motor Industry Federation is currently discussing with it’s members if they should lobby government to extend the scheme.

Currently the vehicle scrappage scheme is over half way through the allocated Government funding (£300m) and is expected to end before the allocated time of February 2010. There have already been over 150,000 orders for new vehicles under the UK scheme. There has been a significant footfall reported by car dealers in showrooms up and down the country, which more importantly has translated into increased vehicle sales. This has helped the Motor Trade during particularly difficult trading conditions.

The scrappage scheme has helped car dealers, iQuote Insurance are also able to assist dealers with cheaper Car Dealer Insurance. Get an online quote for your Motor Trader Insurance and you could save up to 40 percent off your traders policy.

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.