NUMBERS of car dealers going bust halved in January over December 2009 – and are 44 percent lower than January 09.

Experian has revealed that 0.08 percent of automotive industry businesses became insolvent in January 2010.

The figure has not been this low since December 2008, providing further evidence that the car industry is beginning to recover from the depths of the recession.

However, businesses should remain cautions for the time being, warns Experian general manager Mark Nuttall. ‘It is too early to say whether we are out of the woods yet.

‘The financial strength of the sector is still recovering from a volatile 2009 – however, the decrease in insolvencies and improvement in payment performance in January are both good signs for the industry.’

Experian also revealed further facts providing tentative evidence that the car industry is recovering. A full day was taken off the time to settle bills – 15.36 beyond agreed terms, compared to 16.72 days in January 2009.

Overall financial strength improved year-on-year as well. It is now up to 79.91 points, increasing from 78.78 points in January 2009.

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Tags: bankrupt, experian, insolvency, recession

This entry was last updated on Friday, March 5th, 2010 at 10:41 pm and is filed under News.