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  1. Another Reduction In New Car Sales

    December 7, 2018 by Logan Biggs

    Yet again, there has been another monthly drop in new car sales with this news no doubt disappointing those of you in the motor trade industry but in particular motor traders. Figures produced by the Society of Motor Manufacturers and Traders (SMMT) have revealed that there was a fall of 3% in the number of new cars sold when comparing November 2018 with the same month last year. .........read more »


  2. General Motors To Close Number Of Plants In USA

    November 29, 2018 by Logan Biggs

    It has recently been announced by the American vehicle manufacturing giant General Motors (GM) that it is to close a number of its plants in the USA and one in Canada resulting in the loss of in excess of 14,000 jobs. This news has not gone down well with Donald Trump the President of the United States of America.

    As a result, it is being forecast that by the end of 2020 the company will save in the region of $6 billion. That is a huge sum of money. The reason for the shut downs is due to car sales slowing down as well as rising costs. The company intends to invest more in autonomous and electric vehicles.

    The company is stopping production of a number of vehicles such as the Chevrolet Impala, Cadillac CT6 and the Buick LaCross.

    It will be interesting to see if any UK car manufacturers feel the need to cut costs by shutting plants and/or making some employees redundant. Here in the UK, as mentioned in other news articles, there has been a fall in the number of new cars sold in recent months. Let us hope that this situation soon turns around and the motor trade industry is able to provide some good news that it has been somewhat lacking in over the last few months.

    The motor trade industry here in the UK covers so many different types of businesses that are potentially affected by any drop in new car sales. For instance, the services of car valeters are sometimes used to ensure new vehicles are kept in pristine condition prior to sale. New cars need servicing periodically so mechanics are in popular demand both at dealerships and many also run their own business. Unfortunately, some cars are involved in road traffic accidents and suffer damage so car body repair shops provide a service to repair such vehicles. Cars need new parts so car parts businesses provide such things to the likes of garages.

    We will continue to keep our readers such as motor traders up to date with any significant developments should any car manufacturers in the UK decide to follow the way of General Motors.


  3. Used Car Sales Fall In Q3 2018

    November 23, 2018 by Logan Biggs

    It has possibly not been the best of years if you are a motor trader involved either in the sale of new and/or used cars. The Society of Motor Manufacturers and Traders (SMMT) has recently published figures for the number of used cars sold in the third quarter of 2018 here in the UK and they make for disappointing reading.

    In Q3 of 2018 there were 2,057,457 used cars sold bur in the same quarter of 2017 there were 2,102,078. That equates to a reduction of 2.1% that, in volumes terms, is a fall of 44,621. That is a significant fall and is something that may concern some of you in the motor trade industry.

    There was a similar pattern on a year to date basis with 6,182,547 used cars being sold in the year to date to Q3 of 2018 whereas in the same period to Q3 of 2017 there were 6,338,188 used cars sold. That equates to a reduction of 2.5% that in volumes terms is a large fall of 155,641.

    On a positive note, the number of electric, plug in hybrid and hybrid used car sales rose by almost 30,000 when comparing Q3 of 2018 with Q3 of 2017. This equated to a rise of 28.6%. There was a drop in the sale of used diesel cars of 2.6% and used petrol car sales fell by 2.3%.

    With regard to the colour of used cars sold, the most popular colour continued to be black with 431,000 changing hands. In second place was silver/aluminium with 411,924, in third place was blue with 362,096, in fourth spot was grey with 273,881 and in fifth place was white with 240,268. The colour car that fell in popularity the quickest was green in seventh place with a fall in sales of 17.1% to 51,624.

    The top five selling used cars in the UK in the third quarter of 2018 were: –

    1. Ford Fiesta 93,260
    2. Ford Focus 84,014
    3. Vauxhall Corsa 80,789
    4. Volkswagen Golf 68,614
    5. Vauxhall Astra 66,942

    The drop in the number of used cars sales not only has an impact on motor traders but may affect other areas within the motor trade industry. For instance, it could mean that there is less work for those who repair and service used vehicles.

    Let us hope that, when the figures are produced for the number of used cars sold here in the UK for the final quarter of 2018, there has been a turnaround and that, looking ahead to 2019, we see a better year.


  4. Consumer New Car Finance At Point Of Sale Figures Disappointing

    November 15, 2018 by Logan Biggs

    Some motor traders find it beneficial to offer car finance to people buying motor vehicles from them whether they are selling used and/or new cars. In doing so, it can no doubt sometimes lead to increased sales which is something that many in the motor trade will welcome especially as the number of new cars being sold recently has been falling.

    The Finance and Leasing Association (FLA) has recently produced some interesting figures relating to the volume and value of new cars bought by consumers with point of sale finance. Unfortunately, the figures make for disappointing reading.

    In September 2018, new business volumes of such finance dropped by 16% when compared with the same month in 2017. The value of such business reduced by 14% in September 2018 when compared with the same month last year. In the third quarter of 2018, the value of new business consumer car finance at point of sale fell by 4% when compared with the same period in 2017 and volume levels dropped by 6%.

    Interestingly, point of sale finance for used cars rose by 9% for value and increased by 3% for volume in September 2018 in comparison to September 2017.

    Also, on a positive note, for the nine months to September 2018, overall the consumer car finance market at point of sale saw new business volumes go up by 3%.

    There are no doubt many people who arrange car finance elsewhere such as through their bank or building society or there are many specialist online lenders providing motor finance. No doubt a lot of car buyers shop around to find suitable car finance rather than just get a quote from one lender. Having said that, there are no doubt a number of people who prefer to go along and identify a car they wish to buy and then arrange the finance to buy the vehicle through the motor trader as they cannot be bothered shopping around.


  5. October Sees Drop In New Car Sales

    November 9, 2018 by Logan Biggs

    Those of you running a business in the motor trade industry and in particular motor traders will be disappointed to read that there has been a drop in the number of new car sales in October 2018 in the UK when compared with the same month last year. That is based upon statistics published by the Society of Motor Manufacturers and Traders (SMMT).

    In October 2018, there were 153,599 new cars sold yet in the same month last year there were 158,192 – a drop of 2.9%. There were 49,061 new diesel cars sold in October of this year yet in the same month in 2017 there were 62,366 – a large fall of 21.3%. The number of petrol cars sold last month totalled 93,941 with this being a 7.1% rise on October 2017 when there were 87,720 sold. The number of AFVs sold in October this year was 10,597 compared to 8,106 in the same month last year – a significant increase of 30.7%.

    On a year to date basis to October 2018, there were 2,064,419 new cars registered with this being a fall of 7.2% in comparison to the same period last year when 2,224,603 new cars were sold. New diesel car sales on a year to date basis to October 2018 were 656,273 with this being a fall of 30.7% when compared with the same period last year when there were 946,571 new diesel cars sold. New petrol car sales in the year to date to October this year amounted to 1,286,540 with this being an increase of 9.2% when compared with the same period to last year when there were 1,178,169 new petrol cars sold. New AFV car sales in the year to date to October 2018 were 121,606 compered to 99,863 in the same period to October 2017 – a big increase amounting to 21.8%. The market share for new diesel cars fell from 42.6% (year to date to October 2017) to 31.8% (year to date to October 2018), the market share for new petrol cars rose from 53% to 62.3% for the same periods and the market share for new AFVs rose from 4.5% to 5.9% for the same periods.

    The top 5 selling new cars in October 2018 were: –

    1. Ford Fiesta 5,564
    2. Volkswagen Golf 3,765
    3. Mercedes-Benz A-Class 3,339
    4. Volkswagen Tiguan 3,297
    5. Ford Focus 3,283

    The top 5 selling new cars on a year to date basis to October 2018 were: –

    1. Ford Fiesta 84,980

    2. Volkswagen Golf 55,927 .........read more »


  6. Best Ways to Reduce Risk When Driving

    November 5, 2018 by mti

    Driving is a familiar activity for many Britons, but that doesn’t make the activity itself any less dangerous. Driving is much safer than it used to be, of this there is no doubt, but the fact remains that in the UK there is an average of 180,000 accidents per year, and just over 1,500 deaths that occur on the roads. Many of these accidents occur on back country roads as well, meaning that if no one is able to call for help after the accident, it could be a while before anyone arrives on scene.

    It goes without saying that safe driving reduces risk. It also happens to reduce the overall cost of your insurance, giving you extra incentive to practice these top defensive driving tactics and vehicle maintenance inspections.

    Maintain Your Vehicle

    It is your responsible to keep your vehicle – and any trailers you may have – in working order and in drivable condition. Part of this will include regular maintenance. Thankfully, plenty of the maintenance you can do on your own.

    1.    Regularly Clean Your Vehicle

    It is not pedantic to keep your vehicle clean. It is actually how you can keep rust and wear at bay – especially during the colder months when the roads are salted. This salt can eat through and rust your vehicle and trailer before you know it.

    2.    Check Systems

    In the colder months especially, electrical wiring might not work as well as it would in the summer. You need to check all safety features regularly to ensure that they work. This means checking that the lights work, that the brakes work, and so on. If your trailer’s brakes aren’t working well, this could spell total disaster when you are out on the road. Thankfully, with trailers you can often fix the problem yourself with replacement trailer brakes and an afternoon tinkering.

    3.    Maintain Tyre Pressure

    Tyres lose pressure for a lot of reasons, so check regularly that they have enough pressure and that there is not any serious wear occurring. Depending on where you live, you might want to invest in special winter tyres as well.

    Be Prepared for the Weather

    The UK might not have as ferocious winters as some other parts of the world, but climate is changing and you do not want to be caught out in the cold. Instead, have the right tools in your vehicle, maintain your vehicle to deal with the harsher weather, and remember to drive defensively.

    Be Defensive with Your Driving

    Defensive driving is the best way to avoid accidents altogether. It means that you look for issues on the road and with the behaviour of others around you. If you see a swerving car ahead of time, you can take precautions. If you expect there to be black ice on the road, you can take the necessary steps to drive more safely. The point is that defensive driving saves lives, and as a result, it will save you money on damages and your insurance.

    Reducing risk when driving is key to avoiding accidents. After all, if you crash off-road because your tyre blew from driving on it deflated the only person whose fault it is is yours. By maintaining your vehicle and being defensive with your driving, you can stay safer and save money.


  7. September Sees Reduction In Car Production

    October 30, 2018 by Logan Biggs

    September was a disappointing month for the motor trade industry as previously reported with van and car sales dropping in comparison to the same month in 2017. Well, the Society of Motor Manufacturers and Traders (SMMT) has recently produced some figures that show the number of cars built here in the UK has fallen quite considerably when comparing the above periods.

    There were 25,610 fewer cars manufactured in September 2018 in comparison to September 2017. That is a fall of 16.8%. In September this year there were 127,051 new cars built whilst in the same month last year there were 152,661.

    Of those cars built last month, 25,440 were for the home market whilst in the same month last year there were 31,392 – a fall of 19%. There were 101,611 new cars built for export last month whilst in the same month last year there was 121,269- a drop of 16.2%. In September of this year 80% of cars manufactured were for export whilst in the same month last year the figure was 79.4%.

    On a year to date basis up to September 2018, there were 1,171,765 new cars built whilst in the same period last year there were 1,254,352. That is a reduction of 82,587 equating to a fall of 6.6%. There was a big drop in the cars built for the home market with 220,317 in the year to date to September 2018 compared to 270,685 for the same period last year – a drop of 18.6%. The export market fell by 3.3% from 983,667 to 951,448.

    With fewer cars being manufactured this must surely have a negative impact overall on the motor trade industry. This will mean that not as many new cars are sold by dealers here in the UK. This in turn will result in fewer cars being serviced periodically meaning that fewer spare parts are required. A lower number of tyres will need to be replaced. It is to be hoped that things will improve as the motor trade industry is a major contributor here in the UK in terms of jobs and revenue. We will continue to keep you updated as and when figures are produced.


  8. Why Review Your Motor Trade Insurance?

    October 23, 2018 by Logan Biggs

    If you own a motor trade business involved in the buying and selling of new and/or used cars, MOT centre, tyre fitter, car valeter or a garage servicing and repairing vehicles then you will no doubt have motor trade insurance in place. However, when did you last review the level of cover that you have in place to make sure that it is adequate to meet your current needs? Furthermore, when was the last time that you reviewed how much you are paying for your cover?

    If you own your business premises then is the amount that you have the premises insured for sufficient bearing in mind that property values may well have increased significantly over the last few years.

    Have you purchased additional plant and machinery since you arranged the cover? If so, is the level of cover enough to replace these things should they be destroyed in a fire or stolen?

    As your business has expanded, have you increased the levels and value of stock that you carry on the premises? If so, have you also increased the level of cover within your motor trade insurance?

    Is the level of employers liability cover adequate should you be subject to a claim by an employee who may have been seriously injured whilst at work?

    Is the level of public liability cover sufficient to meet any claim that a member of the public may bring against your business say due to slipping on the floor at the business premises and injuring themselves?

    You may wish to get one or more competitive quotes if your existing motor trade insurance policy is shortly coming up for review. There are many insurers all of whom will probably be interested in taking on your motor trade insurance so you may be able to get the required level of cover but for a lower premium than you are currently paying.

    It doesn’t take too long to get one or more comparison quotes so why not do so via our website as we provide access to a number of different insurers. We look forward to being of assistance.


  9. New Van Sales Drop In September

    October 16, 2018 by Logan Biggs

    Motor traders specialising in the sale of new vans will be disappointed to read that, according to figures published by the Society of Motor Manufacturers and Traders (SMMT), the number of new van sales fell in September 2018 despite the fact that it is a month when the new six monthly registration plated vehicles were issued.

    In September 2018, the sale of all new vans to 3.5 tonnes dropped by 6.1% when compared with the same month last year. In September 2018 there were 53,848 yet in September 2017 there were 57,368. That is a significant reduction.

    The sale of new pickups rose by 8.8% from 8,843 to 9,625. The sale of 4 x 4’s increased by 496.2% from 53 to 316. New van sales less than 2 tonnes dropped by 42.9% from 4,563 to 2,605. In the 2.0 to 2.5 tonnes category sales fell by 14.4% from 7,981 to 6,829. In the 2.5 to 3.5 tonnes category new van sales fell 4% from 35,928 to 34,473.

    On a year to date basis to September 2018, all vans to 3.5 tonnes fell by 3% from 282,679 in the 12 months to September 2017 to 274,247. New pickup sales grew by 4.6% from 40,431 to 42,311. 4 x 4 sales rose by 283.5% from 364 to 1,396. New van sales in the category less than 2 tonnes fell by 15.4% from 23,658 to 20,021. New van sales in the 2.0 to 2.5 tonnes category dropped by 5.8% from 42,811 to 40,318. New van sales in the category 2.5 to 3.5 tonnes dropped by 3% from 175,415 to 170,201.

    It is interesting that there has been a fall in the sale of new vans in September as the same thing happened with new car sales last month.

    The motor trade industry could do without news like this and it is to be hoped that the number of new vans that are registered starts to increase in October and beyond to try to make head-roads into the shortfall that has occurred on a year to date basis. We are sure that those of you working in the motor trade industry will share this view. After all, it is not just motor traders affected by these figures as a reduction in the sale of new vans also means that, potentially, there is less work for other areas of the motor trade industry such as the repair and servicing of vehicles.

    Here at Motor Trade Insurance, we will continue to keep our readers up to date periodically when new sales figures are produced by the above.


  10. Huge Fall In New Car Registrations In September

    October 7, 2018 by Logan Biggs

    If you are a motor trader focusing on the sale of new cars, you may have found that the number of such vehicle sales dropped significantly when comparing the figures for September 2018 with the same month last year based upon data produced by the Society of Motor Manufacturers and Traders (SMMT). This is unfortunate news especially when you consider that September is one of the months when new cars are registered with a new number plate that included 68 for last month.

    This was no small drop either. In September 2017 there were 426,170 new cars registered yet in the same month of this year that figure dropped to only 338,834 – a fall of 87,336. That equates to a drop of over 20% – a huge difference.

    Diesel fuelled new car sales fell from 170,733 to 98,191 equating to a drop of 42.5%. Petrol fuelled new car sales dropped from 232,809 to 217,136 – a fall of 6.7%. AFV new car sales rose from 22,628 to 23,507 – an increase of 3.9%.

    On a year to date basis to September 2018, a drop was also seen. In the 12 months to September 2017 there were 2,066,411 new cars registered yet in the same period to September 2018 there were 1,910,820 new cars registered – a drop of 7.5%. Again, diesel fueled new car sales fell from 884,188 in the 12 months to September 2017 to 607,092 in the 12 months to September 2018 – a fall of 31.3%. Petrol fuelled new car sales rose from 1,088,098 in the 12 months to September 2017 to 1,189,154 in the year to September 2018 – an increase of 9.3%. AFV new car sales continued on an upward path with 114,574 being registered in the 12 months to September 2018 compered to 94,125 in the twelve months to September 2017 – an increase of 21.7%.

    The top 5 selling new cars in September 2018 were: –

    1. Ford Fiesta 12,227
    2. Vauxhall Corsa 10,660
    3. Mercedes Benz A Class 8,005
    4. Nissan Qashqai 7,003
    5. MINI 6,931

    Motor traders will be hoping that the market turns around this month and that we see an improvement in the numbers of new cars that are sold here in the UK. The number of new car sales has a knock on effect in the number of used cars that are either sold or put in part exchange. We will continue to keep you up to date.


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