Motor Trade Monthly Round Up April 2017 News
All the most important news for motor traders from the month of April
Used car values have fallen by 1.6%, with lower medium and city car values falling drastically. At three years old with 60,000 miles on the clock, lower medium car values fell by 2.5% and city car values fell by 1.9%. Whilst lower values could mean lower premiums for Vehicle Sales insurance, it means dealers may see a reduced profit when trying to sell cars most affected by the drop in values.
Senior Black Book Editor at cap hpi, James Dower, said: “We have already begun to see the impact on the used car marketplace from the record first quarter which has generated significant stock levels at both dealer and wholesale level.”
“After the relative strength in used car values over the first three months of the year, April’s movements have always reflected the increase in stock availability, twinned with a seasonal slowdown in used retail activity around the Easter period.”
However, a Close Brothers report found that 63% of dealers think their motor trade business will perform better in 2017, 26% think it will continue as it is and only 3% think it will perform worse.
Sticking with vehicle sales, if you’ve been considering selling electric vehicles it might not be the right time to enter the EV market, as 29% of those surveyed for a recent YouGov poll said that price was preventing them purchasing an EV, 24% said that access to charging points was an issue and 22% were not confident in battery range.
In separate news, it’s potentially bad news for mechanics and mobile mechanics who specialise with service fleet vehicles, as Ford have rolled out their Ford Mobile Service programme nationwide, following a successful trial in Greater London. “We are delighted that the Ford Mobile Service vans are now in action throughout the UK,” said, the Chairman and Managing Director for Ford of Britain, Andy Barratt.
According to an NFDA Consumer Attitude Survey, 58% of consumers would book servicing online, 56% would book their MOT online, 44% for tyres and 41% for repairs.
A five-year strategy to tackle MOT system dishonesty and negligence has been published by the DVSA. In the 72 page document the DVSA said: “The quality of testing isn’t consistent for every MOT centre and tester, which leads to warnings and disqualifications.”
“We’ll continue to increase our focus on serious fraud, dishonesty or negligence in the MOT system, so we’re sure vehicles that pass the MOT are safe to drive.”
Motor Traders Insurance
We hope you have found this month’s Round Up both informative and useful, make sure you catch next month’s edition. In the meantime, if you are in need of a Motor Traders insurance quote then click ‘Get a Quote’ below or call 0800 221 8077.