F&I Management & Training

THE NEW car market in Scotland, in May, dropped 2.27% to 14,938 units.
"We are disappointed to see that Scotland's new car registration figures have slowed slightly in May, but I don't think we should be totally surprised as the continuing increases in interest rates over recent months was bound to have an effect eventually," said SMTA chief executive, Douglas Robertson.
"Nevertheless, we remain fractionally ahead of last year's figures whilst remaining guarded in our projections for the remainder of the year."
Wales and N. Ireland
Northern Ireland was the only home country to show an increase in May. There, registrations rose 2.95% to 5,749 cars.
The Welsh market suffered from a 5.9% decline, down to 6,511 units.

DATED: 07.06.07

FEED: AW

VEHICLE REMARKETING Solutions is advising dealers to stock-up with large MPVs.
"It seems that the rise in car tax has pushed retail demand away from 4x4's," said managing director, Lewis Arthur (pictured). "Buyers, instead, are turning to MPVS such as the Renault Grand Scenic."
He believes the market in larger MPVs is growing and is at its strongest since 2003.

DATED: 07.06.07

FEED: AW

THE BANK of England decision to hold the interest rate today met with approval of motor dealers.
"The Bank of England has made the right choice," said Sue Robinson, director of the RMI National Franchised Dealers Association.
"This will allow previous interest rate rises to feed through the economy. Interest rates have been put up four times since August 2006.
"Consumers face rising costs following previous interest rate rises, above-inflation rises in household costs, including council tax bills, as well as the need to pay off debt. All of these costs are impacting on consumer spending, which has a knock-on effect on business,'said Robinson.
"By allowing a period of reflection to measure the impact of these rises on the economy, the Bank of England is giving consumer confidence the chance to recover."
The rate was increased last month to 5.5%

DATED: 07.06.07

FEED: AW

SKODA AUTO is having to increase production in order to meet demand.
The Czech car-maker says it is raising its original production quantity of 580,000 cars for this year to 616,000.
This 6% increase will be followed by a further increase next year to 650,000.
The latest production goals do not include cars produced at Skoda's joint venture in China.

DATED: 07.06.07

FEED: AW

The upward curve of interest rates is significantly hampering new car sales, according to the NFDA.

Year-on-year sales dropped by 2.2 per cent in May, against the backdrop of declining consumer confidence.
Sue Robinson, director of the RMIF's franchised dealer division, said the interest rate rises, coupled with the expectation of a property market slowdown, had dented consumer confidence and had a negative impact on the market.
“May's car sales drop amply demonstrates the negative impact of the recent interest rate rises on consumer spending,” said Robinson.
“March and April's figures were boosted by the launch of the new 07 plate, so what we are seeing is really a return to the anticipated sales levels for the year. However, a stabilization of interest rates might allow the market to recover.”

DATED: 07.06.07

FEED: MT

Peugeot

New 307 replacement is revealed
Peugeot has released the first pictures of its replacement for the 307 hatchback.


The Peugeot 308 is launched in Europe this autumn and could be on sale in UK showrooms before the end of the year.
The car is an important one for the French carmaker's dealer network as the outgoing 307 clocked up worldwide sales in excess of 3 million units.
Produced in PSA's French plants in Sochaux and Mulhouse, the 308 will be available in three and five door versions and Peugeot said it expected the car to be an environmentally vehicle.
Pricing will be confirmed closer to the vehicle's launch date.

DATED: 07.06.07

FEED: MT

Interest Rate Announcements


Bank of England Maintains Bank Rate at 5.5%

To see the latest interest rate decision News Release, please follow the link below:

Bank of England Maintains Bank Rate at 5.5%


DATED: 07.06.07

FEED: BoE

Dealers to offer £1,000 for trade-ins
Vauxhall has launched a new initiative to encourage greener motoring that will see the carmaker offer up to £1,000 for even the oldest part-exchange vehicles.

From now until the end of August, the manufacturer will offer a £1,000 bonus for anyone trading in a car which is then scrapped in exchange for the lowest emission versions of the Corsa, Meriva, Astra and Zafira.
For drivers who do not want their cars scrapped, dealers will still offer a £250 trade-in bonus to encourage buyers into one of Vauxhall’s cleaner models.

DATED: 06.06.07

FEED: MT

Study reveals a near 25 per cent increase
The price of a new car has risen dramatically over recent years, climbing by almost a quarter within six years.

The average new price is now £17,100
The average cost of a new car in March 2001 was £13,900 but has risen by 23 per cent to £17,100 in March 2007, according to research from EurotaxGlass's.
The same positive price rise trend has been mirrored in the used car sector but mitigated by rising depreciation costs.

DATED: 06.06.07

FEED: MT

INCHCAPE has sold the entire issued share capital of Inchcape Automotive Limited, its vehicle logistics and re-marketing arm in the UK.
Camden Ventures Ltd is paying £18.8m cash for company including certain freehold property.
The Inchcape company has two new vehicle preparation facilities with a capacity of 50,000 units per year and six units handling the refurbishment of 110,000 used cars per year.
The company also has a number of vehicle storage locations in the UK covering 260-acres able to store 50,000 vehicles.
Inchcape Plc announced the intention of disposing of the logistics and remarketing arm in March, this year. At the same time it revealed plans to dispose of 47 retail outlets throughout the UK - including all Renault, Vauxhall, Ford, Kia, Bentley, Ferrari, Maserati, Jaguar, Land Rover and Volvo franchises.
At the time, the company said: "We are focused on improving the operating margins, streamlining our overheads and increasing the productivity of our resultant UK business. "


DATED: 06.06.07

FEED: AW

Used car values have started to slow after a bullish performance in the first four months of the year.

Fleet values have dropped in May
Following the new monthly record value for fleet cars that was achieved in April, values have dipped in May
According to the latest Pulse Report from British Car Auctions, fleet values in May fell by over £300 to £6,986 month-on-month.

DATED: 06.06.07

FEED: MT

Inchcape has disposed of its logistics arm in a £18.8m deal.

The business includes a transportation division
Inchcape Automotive, which includes a vehicle transportation division, has been acquired by Camden Ventures, one of the UK's largest dealer groups.
The deal also includes some freehold property but full details have not been disclosed.
Inchcape has embarked on a divestment programme in a bid to focus on expanding its international car retailing business.
The group has plans to increase its presence in the emerging markets and already operates businesses in Russia and the Baltic states.
The dealer group harbours plans to expand in China as well.

DATED: 06.06.07

FEED: MT