Think Insurance, UK, Walsall
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Motor Trade Monthly Round Up December 2019

With December gone and done, here are some of the most popular stories of the month!

Car Production Slump Continues

UK car production has had a steady decline throughout the last 18 months, and in November 2019 the production of new vehicles fell by 16.5%.

2019 volumes as-a-whole to the end of November were down by approximately 14.5%, the majority of which will be heading oversees (80%), with most of these going to the EU (54.7%).

A weak demand from overseas markets has also impacted the volume of production. With the majority of the UKs car production being export-led, it is essential that the government deliver an ambitious trade deal with the EU.

Carmakers are hoping for a swift turn around of fortunes in 2020, with a rise in sales across both UK and Europe required to make up for the struggle in production over the last few years.

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UK new car registrations fall to a six-year low in 2019

UK new car sales fell to a six-year low in 2019, with sales down by 2.4% to 2.3m units, according to figures from the SMMT.

With diesel vehicles facing a 33-month decline, sales were in freefall for the year, down 21.8%, while the sale of petrol vehicles rose by 2.2%.

While diesel declined, electric vehicle registrations experienced the biggest growth, though from a lower base, rising by 144.0% and overtaking plug-in hybrids for the first time.

Private demand was the main force that drove the annual decline, with registrations from consumers down by 3.2%.

Used Car Values Reach Six Year High

With the market of new vehicles plummeting it comes as no surprise that used vehicle sales has had a large boost. The used car market has delivered the strongest December since 2012 in terms of used values.

Smaller vehicles such as city cars and super minis had the most stable market, with their average value increasing by around £50.

Lower price-point petrol cars remained popular, with the value drop over the previous 12-months making them far more sellable.

Lower-to-medium sized vehicles also performed well, with their value increasing on average at the three-year point.

An inconsistent new car market and a steady consumer demand has all aided the value of used vehicles as the demand increased.

Ghost Broker Crack Down

Ghost Brokers is the name for professional fraudsters that sell forged or invalid insurance policies to unsuspecting consumers. This type of fraudulent insurance scam is a criminal offence and has put many people at risk, however in 2019 there was a crackdown on this type of crime and an increase in the number of Ghost Broker sentences issued.

With hundreds of people falling victim to ghost brokers each day, Insurers are having to be more vigilant when it comes to spotting when a ghost broker policy comes through. Ghost Brokers typically offer a heavily discounted price to entice unsuspecting customers who are completely unaware that they are falling victim to a fraud.

Research suggests that over 100,000 people could be out on the roads with a fraudulent Motor or Motor Trade insurance policy as they have unknowingly been scammed by a ghost broker.

Here’s a few tips on how to avoid a ghost broker:

-          When trying to contact you, ghost brokers will often just leave a mobile number, and their first name. A legitimate broker will give you more information, and provide a business phone number for you to contact them on.

-          Many adverts from a ghost broker will offer something that sounds far too good to be true, either with large discounts, or a willingness to accept you without specifics.

-          Adverts will often show up on sites such as Gumtree, business cards in small shops and local newspapers.

-          Ghost Brokers will often offer you a quote there and then, even via a text message, without any vehicle details needed. A legitimate broker will need more information about your business, your vehicles and your driving record.

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Remember! If it sounds too good to be true, make sure you look in to the broker further and find out more information until you’re satisfied everything is above board. Carry out a search online or on social media to get more information about a broker, and check to see if they have a website and whether it looks like it’s a professional organisation or not. You can also check whether your broker is registered with the Financial Conduct Authority too. A legitimate broker won’t mind you being cautious and taking the necessary steps to protect yourself and your business! If you think you’ve come into contact with a ghost broker, then you should also contact the police to report it.

The easiest way of avoiding ghost broking is to use a reputable, specialist broker like Think Insurance. For more information, or to get a quote for you Motor Trade insurance, call 0800 221 8077.