Showing posts with label car. Show all posts
Showing posts with label car. Show all posts

Thursday, November 29, 2007

What Does 2008 Hold For The Motor Industry?

Rising fuel prices, unstable financial markets and taxation changes with the apparent aim of getting us to use our cars less often (or at least pay more to use them) have been just some of the issues that have affected the automotive industry in the past 12 months.
This article looks at what 2008 may hold for the automotive industry and road users in general.

The US economy and the resulting weakness of the dollar looks like it may well contribute to the price of crude oil continuing to rise as investors have been holding the commodity instead of dollars. This means that as the cost of a barrel of crude oil comes close to the $100 figure then so fuel prices have also continued to rise.

So do higher fuel costs mean we are likely to buy or use cars, vans and Lorries less in 2008? Well seemingly not based on a latest poll of motorists. Despite fuel prices increasing at alarming rates a whopping 79 percent of motorists questioned said they had not changed their petrol and fuel buying habits and had no plans to do so. In fact the motorists questioned said petrol prices would have to increase at even more alarming rates to stop them from filling up.

Environmental issues would it seem not be as important as governments throughout the world as over 1 in 3 motorists confirmed they had no plans to replace their vehicles for more environmentally friendly cars before 2010.

And so if motorists are seemingly unaffected by rising fuel costs and are prepared to continue driving despite increased road tax and the impact on the environment surely positive times are ahead for the industry in 2008?

Well before car manufacturers and dealers start doing cartwheels, caution would certainly be advised as whilst General Motors can seen promising performance in emerging markets they have seen big losses in both American and European markets.

And with the world economy in such an uncertain state as 2007 draws to a close 2008 could well see new car sales fall with used car sales increasing. Car sales and indeed sales of all types are also likely to increase via the internet in 2008 so car dealers (new and used) without an internet presence should really be looking at establishing themselves in this emerging marketplace.

And what of the actual motorist, what does 2008 have in store for us? Well how about further increases in vehicle tax, more toll roads, increased congestion charges and still a seeming lack of a viable alternative to road use through reliable, clean and safe public transport.

The good news for some motorists on one front is that whilst the government is seemingly do all they can to penalise the motorist, insurance premiums including car insurance, van insurance and motor trade insurance are pretty stable. In fact with such competition in the insurance industry the cost of insurance like combined motor trade insurance could even fall and savings could be made.

And motor traders who are looking to make savings on their motor trader insurance premiums in 2008 using a specialist insurance broker could well be the route to take to make sure they get the protection they need at a price that is right.

Tuesday, January 09, 2007

Is this the end for the Motor Trade?

From 1st July 2007 the UK bans smoking in enclosed public places with as many as 600,000 people forecast to quit smoking as a result. This article looks at if charging people to drive will have similar results for the Motor Trade.

In The Beatles classic song Taxman the lyric goes, “We’ll tax your feet”. Whilst the government hasn’t yet decided to do this it seems the introduction of “pay as you drive” schemes may soon be hitting the roads of the UK but what impact (if any) will this have on the UK Motor Trade.

Well there appears to be a few factors that road users might want to consider:

- If you’re a driver who drives infrequently or at less busy times you could end up paying less.

- Or you might drive an average number of miles but due to you driving at rush hours (on you way to/from work or school) you will end up paying more money

- You may want to use public transport more often

- You and your friends may set up a car pool scheme so you take it in turns to drive

- If you spend a lot of time on the road travelling to see friends and family maybe you won’t be able to visit them as often as before

- If you spend time travelling for work maybe you won’t be able to visit customers as much or worse still increased transport costs may mean your less competitive or jobs have to be cut

And what about people in the Motor Trade itself?

If the smoking ban just announced makes people stop smoking then maybe forcing people to pay more to drive will mean people will simply drive less often. Therefore less cars are needed, less people are needed to service and repair them and jobs are lost in the Motor Industry.

Of course these are all what if’s as nobody really knows what impact this decision will have on the transport system, the motor trade or indeed modern life.

If maybe a positive move with a journey to work being halved due to less vehicles on the road. It may mean a change in the opening hours for businesses or schools so not everyone is fighting to get to and from work as the same time as the school run is being done.

It may mean more money is invested in public transport so we have buses, trains, tubes and other forms of transport that are reliable and we’d be happy using.

Or of course it may mean nothing changes apart from the fact that we have less money in our pockets.

Whatever your thoughts are on the governments new “pay to drive” schemes the chances are it will happen and the impact on the motor trade could be massive.

For further information of the new pay as you drive plans visit http://news.bbc.co.uk/1/hi/uk_politics/6160877.stm or for information on Motor Trade Insurance visit www.northerncounties.com/motor-trade-insurance.php

What will 2007 hold for the Motor Industry?


As another year begins, businesses throughout the Motor Industry will be wondering what developments await in the year ahead.


With house prices forecast to continue rising and with interest rates also likely to increase further will this mean consumers have less disposable income and therefore less likely to buy new or more cars? And will this have a direct impact on the hundreds and thousands of garages and motor body repairers?


Whatever impact the economy will have on the Motor Trade, businesses of all sizes can take some simple yet highly effective steps to try and make 2007 as successful as possible. These include:

1. Find out what your customers actually want – it’s very easy for businesses to get into the habit of assuming they know what their customers want. However consumers’ needs and expectations are constantly changing and the most successful companies will anticipate these needs and will offer solutions to meet them. And when it comes to the Motor Trade it’s possible that 2007 will mean a shift from customers demanding low prices to an emphasis on customer service. For motor traders who have always focused on providing quality service this can only be a good thing.

2. Being aware of the industry as a whole – from manufacturers being forced east due to over regulation in the motor industry to small garages and body repairers understanding the impact new government “pay as you drive” proposals could have on the future of our roads anyone within the motor trade has a duty to know what is going on. Trade magazines, general gossip and just keeping your ear to the ground can often be used to make sure you stay in touch and have a competitive advantage.

Finally, whatever part of the Motor Trade you work in 2007 promises to be yet another tough but exciting time so I hope 2007 proves to be happy and successful.