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New car sales on the rise - what does it mean for the independent motor trader

With another increase in new car registrations being reported by the Society of Motor Manufacturers and Traders (SMMT), what doe the figures mean for the independent motor trade sector?

Total vehicle registrations reported by the SMMT are the strongest for January since 2007 and constitute the 35th consecutive month of growth. Whilst this is clearly good news for the franchise dealers, does it also mean that independent dealers and garages involved in repair and servicing are seeing growth too? 

Looking deeper into the figures, we see that growth has in the main come from the fleet buyers, with private sales actually showing a slight decline over January 2014. Fleet sales are very likely replacements for existing vehicles, which are likely to be sold on through the auctions. There is no news yet on auction sales volumes for January, but if there is an increased supply of second-hand vehicles coming onto the market too, what is this doing to prices? 

Among the other more striking figures was the reported 60.8% year on year growth in the sale of alternatively fuelled vehicles, a trend that must surely be starting to give rise to demand for servicing and repairs of such vehicles outside of the franchise sector. 

If the changes in new car registrations are affecting the way your independent motor trade business operates, don't forget to check that your insurance continues to provide the cover you need. If in any doubt, contact us to discuss your concerns.


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