The start of the recession spelled troubled times for the motor trade with an endless list of industry casualties, redundancies and closures but whilst most sectors have continued to suffer immeasurably in the current climate, the motor trade industry has been enjoying unprecedented growth.
Whilst forecasters are predicting the recession to continue for a significant while yet, insurance brokers predict this growth to continue in 2013.
Investment in new vehicles
Whenever an economy is struggling a sure-fire signal is the reluctance to purchase new vehicles but recent statistics make for promising reading for the motor trade industry with UK consumers purchasing 12% more cars in 2012 than they did in 2011.
This is a significant increase from the 5% predicted at the start of the year by The Society of Motor Manufacturers and Traders who have since had to re-evaluate their initial forecast, with motorists clearly prepared to invest in new vehicles.
Protection from Insurance brokers
So what is the secret of success in the industry?
Well it’s largely down to motor trade insurance companies who have provided enough protection to be adaptable in these economically challenging times.
With a large range of vehicles more attainable than ever before, both new and used cars are now more affordable than ever, which in-turn has led to the increase of sales in dealerships.
As interest rates continue to fall and a vast amount of financing options available, it comes as no surprise that 70% of new cars were purchased via some finance agreement.
There is a flip-side to this however. Some dealerships, reluctant to offer such a wide range of financing options for customers, have been forced to close due to insufficient motor trade insurance policies which are key to their long-term survival.
But as long as there are dealerships open to flexibility the motor trade industry should continue to thrive and look forward to a successful 2013.
Compare Crazy is a motor trade insurance and business comparison site dedicated to providing small business owners information and access to products and services that will save them hundreds of pounds on the cost of running, promoting and operating their business.