F&I Management & Training

Dealers are reporting mixed demand for new cars, according to trade body the RMI.

“Dealers are not negative about market conditions but it’s proving tough and they’re relying on strong, robust processes to ensure sales are made and these seem to be working,” said RMI director Sue Robinson.

“Market conditions are mixed, and brand dependent, with demand for some models outstripping availability. On these, popular models, both margins and volumes look set to be strong before the year end,” she said.

Robinson said demand for less attractive models is being fuelled by promotions and competitive prices in a push to achieve carmaker targets, moves which could adversely impact on used car values.

“November was busier than October, and we’re hearing from dealers that specific brands are selling well, perhaps above expectations, most likely as a result of a very competitive pricing and some attractive new models.

“One dealer described looking ahead as ‘like driving through fog’, but for the time being trade is ‘better than expected’.”

Robinson said the VAT rise set for January was not having a significant impact on footfall.

DATED: 22.12.10

FEED: MT