Multi Motor
In December 2007 an article was written by NCi Motor Trade, the Motor Trade Insurance Brokers about what 2008 might hold for the automotive industry with rising fuel prices, unstable financial markets and taxation changes looming. Now 12 months on this article looks at what the motor trade can expect in the coming year.
There is no getting away from the fact that 2008 has been an extremely difficult time for most people in the motoring industry. From car sales falling dramatically in the wake of financial market crashes and the credit crunch to the value of used cars reducing significantly, the industry has seen turmoil, job losses and struggles during the year.
So is there now light at the end of the tunnel for motor traders as 2009 begins or is 2009 likely to remain tough for body repairers, car dealerships and all those associated with the auto industry?
The bad news for the industry is that car sales are forecast to remain on a downward trend during early 2009 which in turn is likely to hit profits and jobs in the motor industry. A big problem has been that consumers have struggled to obtain credit which has hit hard their ability to make large purchases such as cars. And it has only been in the past few months where we have actually seen the cost of fuel falling as much of 2008 has seen high costs associated with running a vehicle.
Further evidence of the trouble that still lays ahead for the automotive industry has been highlighted in the past few weeks where Honda have announced they are pulling out of Formula 1 which could result in the loss of up to 800 jobs in the UK. And on a much larger scale is the news that Barack Obama is looking to set up a multi billion dollar rescue package to help save the ailing US auto industry.
The truth is what happens in the USA is often mirrored in other parts of the world. A often use phrase goes that if America sneezes, the rest of the World catches a cold. For this reason, this rescue package could make or break the auto industry in 2009.
And so with motorists seemingly having their hands tied and not being able to get credit to buy new vehicles, what can people in the motor industry do to cut their costs and get through this difficult period relatively unscathed?
Well with the world economy in such an uncertain state as 2008 comes to a close, 2009 could well be the time for motor traders of all types from body repairers and MOT stations to new and used car dealerships to tighten their belts even further. One way in which costs for the auto industry could still be cut is in a review of their relationships with service providers. An example of this is when they look to purchase their business insurance and motor trade combined insurance policy. Whilst loyalty is extremely important when times are tough, motor traders may have to consider switching their motor trade insurance to a specialist motor trader insurance broker who may well be able to make them a substantial saving on their premiums.
For motor traders who are looking to make savings on their motor trade insurance premiums in 2009, using a specialist insurance broker could well be the best way to ensure they cut costs and save money on their motor trade insurance. By doing this they could very well cut one of their largest expenses. 2009 is going to be tough for the motor trade and indeed most other industries but managing costs could go some well to helping us all through these difficult times.
About the Author:
Mark Burdett works for NCi Motor Trade the Motor Trade Insurance Specialists and for details of their
http://www.ncimotortrade.co.uk>
Motor Trade Insurance facilities or to get a
http://www.ncimotortrade.co.uk
> motor trade insurance quote simply visit the
http://www.ncimotortrade.co.uk
> combined motor trade insurance experts
Article Source: ArticlesBase.com – What Does 2009 Hold For The Motor Industry?
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