New Car Sales and Surviving the Economic Crash as a Motor Trader

Dealerships in the UK are riding out the economic downturn and actually improving when it comes to year-on-year sales. The longevity of each trader depends on their own doggedness – covering all the business angles to ensure survival and enjoy ‘mini-booms’ in the meantime.

Return on sales upped by 0.2% in July 2012 compared to the same month in 2011 – one of the months which usually prove to be difficult for traders every year, as more drivers look to September for the introduction of fresh registration plates. The figures were recorded by the ASE and could encourage further success in the latter half of the year.

Meanwhile, another symbol of progression in the sector is Honda’s ambition to double its car sales in the UK by the year 2017. Dealerships, for both new and used cars, can ride the upward curve of the overall industry if they are well positioned, well equipped and well motivated to do so:

Smaller teams of specialist salespeople look to be one of the key elements to success in new car sales. Minimising costs and increasing conversions, is always a healthy equation for a business and that is an approach a lot of dealerships are taking now. In the ASE’s recent report, they underlined how ‘sales per salesperson have dramatically increased’.

Behind the forecourt comes all the nitty-gritty of running a dealership and one of the most important factors of survival in this industry – business protection. As the staff numbers decrease and their average experience improves, adding these to a motor trade insurance policy and ensuring they are covered to operate on the premises (driving customer vehicles, prospective sales etc), needn’t be too costly.

If your employees are well versed drivers and all hold clean licenses, then attaching them to your protection package can be done inexpensively. Get in touch with a broker like and they will make sure that everyone on your team is covered to drive third-party vehicles, all your company cars are protected legally, the business premises are safeguarded against damage and theft; they will include any other areas of insurance your dealership may need. This is what is meant by bespoke insurance policies.

The best part about going through a broker is that they then take your bespoke package and actively seek out an insurer who can provide that level of protection. Further to that, they bargain on your behalf for a very appealing premium – so that ‘nitty-gritty’ is pretty much taken care of.

All that is left for you to do, is concentrate on sales. The way the market is going (used car values up by £250+), it looks like both pristine and second-hand vehicles are of particularly high worth at the minute; so the figures, encouragement and advice here, can apply to every dealer in the UK.

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