Contact us

Your Name (required)

Your Email (required)

Your Message

2011 sees slump in new car sales

Category: Invoice Factoring — Paul Morgan on January 8, 2012

Scottish registrations for new cars fell by just short of 5% in 2011, according to the latest figures released by the motor trade industry.

The total number of new cars registered was just below 167,000, representing a fall of 4.85%. Though this is slightly ahead of the figure across the whole of the UK, it is not something that unduly worries the Scottish Motor Trade Association (SMTA), in light of the present economy.

Reacting to the news, the SMTA chief executive, Douglas Robertson said:

“People are hanging on to their cars [for longer] – it is the same with business and fleet cars.”

The motor industry has performed considerably well throughout the downturn, helped in part by the government’s scrappage scheme of 2010. However, many dealerships, particularly those concentrating on the corporate market have struggled with cash flow.

Many have managed to drive their business forward though, introducing different lending strategies through such means as invoice factoring. This has helped them to bolster their finances and has allowed them not only to continue purchasing stock but ensure staffing levels are strong enough to respond to customer demand.

Though the fall in new car purchases is not good news, mindful of the scrappage scheme it is perhaps better than many would have expected. With a large number of new models expected this year, many are quietly confident about 2012.

Fleets will be a year older than usual for example, whilst with many improvements in fuel efficiency on newer models, many drivers will be eager to reduce their weekly outgoings.

'Disclaimer: The information contained in these articles is of a general nature and no assurance of accuracy can be given. It is not a substitute for specific professional advice in your own circumstances. No action should be taken without consulting the detailed legislation or seeking professional advice. Therefore no responsibility for loss occasioned by any person acting or refraining from action as a consequence of the material can be accepted by the authors or the firm.

No Comments »

No comments yet.

RSS feed for comments on this post. TrackBack URL

Leave a comment

IFS Guide
IFS Presentation
NACFB - Helping Fund UK Businesses  Federation of Small Business