The recent remarks made by Paul Everitt, Chief Executive of The Society of Motor
Manufacturers and Traders (SMMT), at the Frankfurt Motor Show will have had many car dealers searching for ways to save money. Everitt believes the car market may remain flat for three to five years.
Needless to say, adopting any kind of money saving strategy is a good idea at the
moment. For example, car dealers can often save money by securing proper motor trade insurance providing maximum cover from a specialist motor trade insurer like
Let’s look more closely at Everitt’s comments about the car market and some of the
reasons he believes the market may stay the same for three to five years. The key
seems to be consumer confidence, which has taken some severe knocks in recent years. After all, mass unemployment, continuing job losses, reduced incomes and a freeze on salaries do little to entice people to spend. Tough times have put people under great financial pressure.
Purchasing a car is a significant investment that many people simply cannot afford at the moment. Those who have been buying cars seem to have been buying smaller models like the Ford Fiesta, which are cost effective, have great fuel efficiency and are cheaper to insure.
Everitt took time out at the Frankfurt Motor Show to discuss ways around the troubled market, but he could not see any great improvement being made throughout 2012 to 2014. One thing Everitt was incredibly positive about was the sheer high standard of car manufacturing that was clearly evident from the cars being showcased around the Frankfurt Motor Show stands.
Manufacturers have been taking the initiative, creating cars that save money while
helping the environment. Among these smaller, and therefore most likely to sell cars,
the Ford Focus ECOnetic and Ford Fiesta ECOnetic were highlighted as being particularly praiseworthy.
Everitt cast his gaze back to the scrappage scheme introduced by the Labour
government of yesteryear, which encouraged 10 year old cars to be traded by buyers in exchange for cash off new models. However, he was quick to add that the tight budget and policy of extreme austerity held by the Conservative-Liberal Democrat coalition meant that such a scheme would be doubtful in the current climate.
It seems for now, car dealers must take action to tighten their belts throughout the slow recovery.