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VCARS News

Car Production in UK – Infographic

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UK car production is a massive sector and is the third biggest export out of the UK pulling in around £23.5bn last year (according the the guardian.co.uk) – about 12-13% of the UK’s overall exports. In 2011 alone, car production in the UK was responsible for 1.3m vehicles more

Traffic camera ‘ring of steel’

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A rural Hertfordshire town is the first in the UK to have all roads into and out of it completely monitored by automatic number plate recognition (ANPR) cameras.

The village of Royston on the Hertfordshire / Essex / Cambridgeshire borders seems to be an ideal test site for the more

Cheaper eco-friendly cars could help car dealers

Trying to make it cheaper for motorists to buy an eco-friendly vehicle is one way in which car dealers may increase the number of visitors to their showrooms and the number of greener cars on the road.

With the economic climate tightening the purse strings of the majority of people, a number of motorists have looked towards their vehicles as a way of making savings.

To do this, many have stepped up their search for a greener vehicle, offering greater fuel efficiency, while also potentially providing motorists with free road tax.

However, a new poll from TheGreenCarWebsite.co.uk has revealed that the cost of these vehicles is the biggest obstacle preventing people from making a purchase.

A third of respondents stated that the cost of green cars compared to regular models of a range made it impossible to buy the more eco-friendly offering.

Faye Sunderland, editor of the website, said: "As it stands there is not enough incentive to the consumer to select the greenest variant of a car model; more needs to be done to support the sale of green cars.

"With a third of our visitors being put off buying a green car due to the cost, it should deeply concern the industry that the market for these cars is being priced out."

Meanwhile, the company also stated that it could cost a motorist up to almost £5,000 more to buy a green-badged variant of a car compared to the entry-level model.

Other results of the research found that some 26 per cent of respondents felt that they simply could not afford the cost of a new car, despite the fact that they could save £2,000 through the government scrappage scheme.

Among the vehicles which fit into the green-badged mould are Ford’s ECOnetic range and the BlueMotion vehicles from Volkswagen.

Middle-aged buyers taking advantage of scrapping scheme

Middle-aged cash buyers are the biggest users of the government scrappage scheme, it has been revealed.

A survey from the Retail Motor Industry Federation (RMIF) has stated some of the key stats associated with the scheme, offering motorists a £2,000 discount on a new model if they trade in their used car of over ten years of age to be scrapped.

Some of the findings highlighted that a fifth of the cars are priced between £8,000 and £10,000, while 63.7 per cent of those taking advantage are between the ages of 45 and 60.

Furthermore, just over two thirds of motorists seek an engine size of between 1.0-litre and 1.3-litres, meaning that vehicles including a Ford Fiesta, Nissan Micra or a Volkswagen Golf are among those which offer the most appeal.

The study was also carried out by the motor industry newspaper Automotive Management.

Editor of the publication Jeremy Bennett said: "Car buyers now have the knowledge they need to make a fully informed purchasing decision.

"It’s clear the scrappage scheme has released pent up demand which had built up as result of uncertainty as we waited for a decision on a scrappage scheme."

The scrappage scheme for the car industry was announced as part of the 2009 Budget by chancellor Alistair Darling.

Car dealers can hold the aces over private sellers and internet websites

Offering strong part-exchange deals could be key for car dealers looking to increase their sales among motorists.

With the motoring industry going through a difficult period and car showrooms also being challenged for sales from internet sites allowing used cars in particular to be advertised as ‘for sale’, it is easy to see why times may seem tough.

However, although there are strong reasons why a motorist may look online for a new vehicle, there are also many plus points of buying from a dealer and these are the areas that need to be focused on.

One of the main areas of strength, according to Netcars, is convenience, with showrooms allowing a motorist to sort out a number of problems in one location.

These include the warranty of a vehicle, finance packages and car insurance.

Also, there is the added incentive that a motorist should be guaranteeing themselves a car that is in full working order that can be used for a number of years.

Motorists have to research into the reasons why a private seller would be looking to offload a vehicle and then must decide if they are potentially buying a car in relatively bad condition that might cost a lot to repair in the near future.

Other risks facing motorists who buy from a private seller is that the car may have outstanding finance left on it, while some difficult-to-spot dents and rust may be present and the car could have been previously written off by an insurance company.

Speaking to the Times, Paul Hughes revealed the potential trouble he almost suffered with when considering buying a used Nissan Navara from a private seller.

He said: "I went to the seller’s house to view the car, which was in reasonable condition.

"The paperwork all seemed fine, so I made an offer. The seller insisted that I paid cash because he claimed to be having problems with his bank."

However, after carrying out a vehicle check before completing the purchase, he discovered that there was no issue number on the V5C, meaning that the documents were probably forged and that the car was a clone.

Motorists in Liverpool may be the easiest to complete a car sale with

Car dealers may find it easier to strike a deal with a motorist in Liverpool, as it has been discovered that they are the least self-conscious about the condition of their vehicle.

With many dealers potentially struggling to make a sale as motorists fail to make a concrete decision over whether the car being looked at is exactly as they desire, motorists in Liverpool may reach a decision quicker than most if the price is right.

Research from the Karcher UK Academy has found that Scousers are the least embarrassed over the condition and look of the vehicle compared to motorists in over locations across the UK.

It was discovered that only four per cent of drivers in the region become concerned about the look of their vehicle, compared to 29 per cent of motorists in Bristol.

Overall, it was determined by the study that a fifth of British motorists have at times become embarrassed by the state of their car.

Meanwhile, motorists and dealers intent on ensuring their car looks good have been told that this can be done without major expense.

Nigel Adams, a car cleaning master from the Karcher UK Academy, said: "It is possible to achieve a high standard, professional-looking, clean car yourself, without having to use the services of an expert valet."

He added that this is possible by using the right tools and carrying out the work in the right way, such as soaping, brushing and rinsing.

Alternatively, used car dealers and motorists could equally opt to visit a car wash to get most of the dirt off their vehicle, while running a vacuum around the interior.

Car dealers could improve finances by looking at software systems

Car dealers looking to boost their financial position have been told that they may want to cut back on the number of software systems that they are currently running.

Pinewood has indicated that many dealers opted to use software systems in the past as a way of managing their sales diaries and customer relations, according to Fleet Directory.

However, many dealers opted to use standalone data management systems (DMS), alongside manufacturer IT.

But with times changing, new technology sees the DMS and manufacturer IT run more smoothly together and dealers would be better off making the switch to prevent unnecessary cost and complication, it has been suggested

The publication reveals that Neville Briggs, managing director at Pinewood, said: "The main issue is that these standalone systems can’t communicate with other dealer IT, so it is not unusual to find two or three databases being run side by side that cover the same information.

"This creates a lot of unnecessary work such as rekeying."

He added that the new developments mean that dealers do not need to run high quantities of software, which will help reduce both their software and hardware bills, while also preventing work from being unnecessarily duplicated.

"The better DMS and manufacturer IT systems have now plugged the holes in the capabilities that allowed the market for these standalone systems to emerge," Mr Briggs explained.

Meanwhile, car dealers may also want to spend some time ensuring that the information held on their databases is accurate in case they may need to get back in touch with customers they have built a relationship with in the past.

Information provider HPI has revealed that a quarter of the contact details held by dealers are wrong, meaning that they could lose out on some potential sales.

Scrappage scheme helping new-car dealers and could benefit used car dealers too

A host of car dealers are witnessing a rapid increase in the number of motorists paying a visit to their showrooms as a result of the beginning of the upcoming vehicle scrappage scheme.

The scheme gets underway on May 18th, with motorists given the chance to add their ten-year-old vehicle to the scrap heap in exchange for a £2,000 discount on a new car.

Sue Robinson, director of the Retail Motor Industry Federation, revealed: "Consumers have already shown great interest in the vehicle scrappage scheme, with dealers reporting a marked increase in enquiries since the scheme was announced in the Budget in April."

While this may be good news for car dealers trading in new cars, the implementation of the scheme is unlikely to harm the number of vehicles used car dealers could see driving off their forecourts.

Glass’s has argued that the type of motorist interested in becoming involved in the scheme is different to that looking to buy a used car that is either a year or two old.

It is believed that those considering an almost-new car will now have a vehicle old enough to feature in the scheme and will thus continue their search for a used car that takes their fancy.

Adrian Rushmore, managing editor at Glass’s, has also indicated that there are other reasons why used car dealers could be beneficiaries of the scrappage scheme.

He said: "The scrappage scheme is likely to increase demand for new city cars and superminis more than any other type of car.

"Many of these cars are already in limited supply, and the expected additional demand will merely serve to extend delivery lead times.

"Customers not eligible for the scheme will also find themselves joining lengthening queues, and are therefore more likely to consider a late-used alternative."

Car dealers could improve sales by clearing out bad smells from used cars

Ensuring that a used car is washed and polished can help a car dealer boost the chances of gaining a sale, but other chores may have to be carried out to increase the probability further.

As well as checking over the outside of a car, an interested motorist will also want to sample the inside of a vehicle, where they could be put off by bad smells.

And some smells may not be removed by a nice air freshener, as a failure to clean out a car’s air conditioning system could bring some nasty stenches to a passenger’s nostrils.

This problem could be particularly evident in the summer months when a motorist is more likely to switch on their air con systems and dealers would do well to take note of some research by Kwik Fit to prevent bad smells occurring in the used cars they are looking to sell.

Despite it being advised that air conditioning units should be cleaned out every two years, only 11 per cent of motorists admitted to ever having the air conditioning units of their used cars serviced in the study.

A failure to do this leads to a build up of bacteria and mould and David White, customer services director at Kwik-Fit, stated that the company is "amazed" at the amount of people that put up with offensive smells inside their cars.

He added: "You might find that nasty smells are more prevalent as the weather heats up as air conditioning units are often left untouched during damp colder periods, allowing more bacteria and mould to build up."

Alternatively, motorists may want to consider trading in their used car for a new vehicle from a car dealer that always comes with a pleasant smell courtesy of the combination of materials used on the interior.

Nissan may have the idea to boost sales

Car dealers looking to boost their profits as much as possible should go out of their way to give motorists the biggest incentives to buy a new car.

New research has indicated that a shift has taken place in the reasons why motorists feel the urge to buy a new vehicle.

In the past, at times when the cost of fuel was at its highest, motorists were on the lookout for the most fuel-efficient vehicles to reduce their general everyday running costs.

However, the recession has now caused a number of motorists to only seek a new car when their current model is incapable of running any more.

Six months ago, some 45 per cent of motorists cited saving money on running costs as their chief reason for buying a new vehicle.

Yet, the latest AA Personal Loans Car Purchase Index has revealed that this figure has now fallen to 29 per cent, with 44 per cent of motorists looking for a new car only to replace a current old or damaged model.

Thus, the government’s decision to introduce the scrappage scheme on older cars could be just the tonic that a dealer needs to boost sales, as it is an ideal encouragement for motorists to trade in their old car for a discount on a new model.

Mark Huggins from AA Personal Loans is optimistic that the scheme could introduce certain motorists into the new car market for the first time.

He said: "At a time when families are perhaps keeping cars longer, the new government scrappage scheme could be crucial to kick-start the industry and get people buying again.

"Despite the downturn, the average personal loan for a car has stayed at around £8,000 which means that the scrappage scheme will enable some families to buy a new car for the first time."

And manufacturer Nissan is extending its options further by allowing motorists with vehicles that are eight-years-old to benefit from the service.

The only catch is that they have to buy a British vehicle from the range.