Tag Archive | "Motor trade"

RETAIL TRADE FACES ‘UNCERTAIN FUTURE’

Tags: , , , ,

RETAIL TRADE FACES ‘UNCERTAIN FUTURE’


New car registrations continue to fall

The UK’s motor retail and parts industries face an ‘uncertain future’ as the number of firms in ‘significant financial distress’ according to a new report.

The research, published by insolvency firm Begbies Traynor shows that both new and used car dealers are having a very hard time as new registrations continue to fall. Interestingly, the firm cites a glut of used cars on the market as one of the reasons for used car dealer’s distress, rather than the number of pre Euro-5 vehicles taken out of the market as a result of scrappage schemes offered by various VMs.

Over the past year, the level of ‘significant distress’ for used car dealers rose by a third to 1851 dealers, compared with the same period in the previous year.

Julie Palmer, partner at Begbies Traynor, said: “Consumers up and down the country are tightening their belts in the face of rising inflation, increased interest rates and real wage pressures, causing households to put the handbrake on spending on big ticket purchases, and encouraging many to hold on to their vehicles for longer”.

“Even those owners looking to upgrade their vehicles are struggling to do so, as a recent glut of second hand cars on the market continues to depress the value of second hand motors while making new vehicles and their hefty price tags even less appealing”.

New car dealerships fair little better, with consumer confusion regarding diesel legislation and a lack of electric infrastructure keeping would-be car buyers away. Worryingly, the findings chime with the results of a KPMG survey released at the same time that predicts over half of all dealerships in the UK could close within eight years, leading a number of dealer principals and other motor industry executive to state that the only way these businesses can survive is to convert to a used car dealer and/or repurpose to becoming an independent service garage (see page 5).

FINANCIAL HEALTH

The Begbies Traynor findings were published in the firm’s Red Flag alerts, which monitors the financial health of UK companies. It warns that a number of macro-economic pressures last year contributed to this considerable increase in distress, with the combination of rising inflation, stagnant real wage growth, a weak
pound, political uncertainty, November’s rise in interest rates, and the ever-tightening credit environment putting increasing financial stress on businesses across the country. As a result, 258,349 UK businesses ended the year in a position of negative net worth, while a further 154,251 demonstrated a ‘worrying increase’ in their working capital deficit.

Palmer added: “When the overall business environment is so challenging, unfortunately there can be few real winners, however certain sectors of the economy are certainly feeling the pinch more than others. In particular, the vast UK support services sector saw a spike in distress as their stretched customers reined back spending. The construction industry saw the lowest levels of optimism in five years while the real estate sector felt the full impact of the increasingly stagnant UK housing market”.

Posted in Blogs, Factor & Supplier News, Garage News, News, UncategorisedComments (1)

ICO RAID ON BODYSHOP DATA

Tags: , , ,

ICO RAID ON BODYSHOP DATA


bodyshop_picThe Information Commissioner’s Office (ICO) has raided two houses and a business in the North West, following a tip that people in the premises were involved in the illegal sale of personal data from the motor trade.

The raids are connected to an ongoing investigation into hundreds of thousands of cold calls made to people to encourage them to make personal injury claims in relation to road traffic accidents.

Mike Shaw, Enforcement Group Manager at the ICO, said: “We know lots of people get these calls suggesting they’ve been involved in an accident, and wonder how the caller had their details”.

“The answer is that lists of people who’ve been involved in car accidents can be valuable leads to claims companies. That information is difficult to come by, even for the more disreputable firms, so data on people who’ve simply had their vehicles repaired is still prized, even though many of those people won’t have been involved in any accident”.

Jason Moseley, Director of RMI Bodyshops said: “We are pleased to hear that investigations into the illegal trade of motorists personal data are proving successful”.

He added: “We are committed to helping eradicate this type of behaviour which is tarnishing our sectors reputation. RMI Bodyshops members recognise the importance of ensuring motorists details remain confidential and we will continue to protect our member’s reputations by doing whatever it takes to prevent and stop this behaviour”.

Posted in Blogs, Factor & Supplier News, Garage News, News, UncategorisedComments (0)

Advertisement
  • New MOT rules and the implications for testers
  • Aftermarket Lives: A regional battery distributor and the Ecco group.
  • EC proposes compulsory ADAS

more info

    • Should hand car washes face further regulation?

      View Results

      Loading ... Loading ...
    • Popular
    • Latest
    • Comments
    • Tags
    • Subscribe