The release of the new 63 plate was expected to increase new car sales around the UK. This is because when it came reasonably close to August buyers tend to hold out till the new plate becomes available. Not only this but those who are looking to sell their 13 plate cars will also boost the used car market too.
Despite August usually being a reasonably quiet time for the motor trade industry, this year there was a large rise according to statistics that were published by SMMT. According to the report the sale levels were very similar to those that were seen before the recession hit. Sales were up 10.9 per cent from 2012 which meant that there were a total of 65,937 sales during this month. This means that up to this point during the year that the total sales were 1.39 million. August was the 18th month in a row that was recorded as having an increase which is great news for the motor trade industry.
It has also been predicted that by the end of last month that 390,000 new vehicles would have been sold by the end of September and many believe that this increase will continue into the month of October. The industry is expecting to see £6 billion spent on new cars.
If you are already experiencing this demand then you are probably already well equipped for the surge in interest but if it hasn’t hit you yet then it is best to get well stocked on new vehicles as well as making sure that your motor trade insurance is going to be appropriate for the increase in the amount of footfall you will see over the next couple of months.
One of the best parts about buying a car is being able to test drive many, so being prepared for this is essential, especially if customers are buying 63 plates. They will be spending a lot of money and will want to make sure they make the right decision probably through a number of test drives. The motor trade insurance policy must include public liability or you will have to take out extra cover to make sure you are protected against any accidents that may happen on your property.
It is also a good idea to talk to your insurance broker to find out if you are covered in the event of an accident during a test drive. If there was an accident and you aren’t covered for this particular type of incident then this can set you back financially for your business. Recently a couple in Cumbria actually stole a test drive vehicle worth £19,000 which is why having the right insurance policy is essential.
David Bruce who is the Director at AA Cars has said, “Between September and November we’re expecting dealers to be busier than they have been for some years.
“For every new car sold, at least three used cars change hands over subsequent weeks.”
“There will be a large influx of used cars being taken in part-exchange and, over the next three months, the used car market could see over 1.25 million cars changing hands.
“During the recession, the number of people planning to change their car within two years had fallen to a record low.
“Dealers are more optimistic that I’ve seen for a long time, with a lot of used cars coming on to the market there will be some deals to be had for the canny buyer.”
Howard Archer is the chief economist at IHS Global Insight and he has said, “Very strong sales in the key month of September are particularly good news for the car industry while also providing more evidence that the economy is sustaining its improved performance.
“In fact, car sales have been robust through 2013, which is in marked contrast to the weakness seen across most of Europe.
“The motor industry will be hoping that the recent improvement in UK economic activity is sustained and extended, and that this leads to further strengthening in consumer and business confidence, and their willingness to splash out on new cars.”