It’s not been the easiest time for motor traders in recent months. With declines in sales, rising inflation and a VAT rate still held at 20 per cent, it looks like businesses are feeling the pinch as much as their customers, and new figures have done nothing but highlight this further. It may be time to consider motor trade insurance or other measures to counteract these issues.
The Society of Motor Manufacturers and Traders (SMMT) revealed that over 330,000 new cars were sold last month, meaning that sales fell short by one per cent on a year ago’s figures. While it outperformed industry expectations and led the SMMT to put on a brave face, the organisation nonetheless highlighted that 2011 will still be “a challenging year” for car sellers, which will likely fall five per cent below 2010 figures by the year end.
Paul Everitt, the chief executive of the group, added: “SMMT has revised down its 2012 registrations forecast to 1.96 million units, a reflection of the continued weakness in UK domestic demand and the uncertainty across European economies.”
As such, traders insurance may be best for companies looking to save themselves from the prospect of financial problems, but ensure that they get the best deal through specialised experts like Staveley Head, which looks at the best offers on the table. After all, specialist brokers are always more aware of the wide array of options available to their customers, so stand in a better position when advising on steps that can be taken in order to lower premiums.
Motor traders should make sure they consider just how many cars they believe they can realistically sell in a year, instead of aiming high and hoping for the best. If it is fewer than three, a private car insurance policy could be the best bet; after all, it will deliver considerable savings as the individual in question can simply insure one car and then change the car covered every time one is sold. Fleet policies may also be good for organisations when there is low vehicle turnover, yet a higher volume of sales. Traders also have the option of saving money on their premiums by selling from their homes, as a policy that covers their drive and garage – as well as a road risks policy – could be all they need.
Another key consideration of getting the best motor trade insurance policy for you is to identify the level of indemnity necessary for your business. Motor traders need to think carefully about the value of the cars they are selling, as money can be saved if you take out the lowest amount required to cover their value. After all, if most of the cars you are selling are valued at £15,000, it simply wouldn’t make sense to take out policies that value them all at £20,000 or more.
By taking a prudent approach to your insurance, you can guarantee that you give yourself the best chance of withstanding the current dip in the market, while also learning a number of valuable lessons before the industry picks up once again.
