Flint Insurance

Flint Insurance

December 29, 2009 01:01 ET

Motor Traders Warned To Prepare For Tough New Year

HARROW, MIDDLESEX--(Marketwire - Dec. 29, 2009) - Motor trade insurance specialists Flint Insurance are warning those in the sector to prepare for a tough start to 2010. January's VAT increase, coupled with the end of the car scrappage scheme in February could deter motorists from changing their cars. With the motor trade industry already struggling due to the recession, traders are being urged to do all they can to encourage new customers.

The final quarter of the year saw new car production and sales increase, due to the unprecedented success of the vehicle scrappage scheme. According to figures released by the Society of Motor Manufacturers and Traders (SMMT), a total of 158,082 new vehicles were registered in November 2009, an increase of 57.6% on the same period in 2008. Sales for the first 11 months of the year, however, total just 1.84m, down 8.8% down on the previous year's figures.

This has led to calls for the Government to extend the vehicle scrappage scheme beyond the February 2010 deadline. A spokesperson for Flint Insurance commented:

"The decline in car sales we have seen in 2009 is likely to continue well into 2010. Although this has rallied somewhat due to the scrappage scheme and VAT reductions, consumer spending remains cautious. With VAT returning to its usual rate and the end of vehicle scrappage allowances, dealers are likely to find it difficult to sell cars in the new year."

Continued:

"We would encourage all of our customers to prepare for this by offering incentives such as attractive finance deals and servicing packages on cars, in order to encourage customers to buy. The new year period is a busy one for shoppers and with many retailers offering heavy discounts on stock, we would encourage all motor traders to do the same."

Based in Harrow, Middlesex, Flint Insurance are one of the UK's leading motor trade insurance brokers. They offer bespoke policies to cater to the varied needs of clients and using a panel of insurers means that they can offer the most competitive prices. To find out more, visit: http://www.flintinsurance.co.uk/

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