SCRAPPAGE shock will be eased if car dealers turn their attentions to profitable opportunities in Motability sales.

Car industry consultancy Network Automotive says car dealers are currently underexploiting Motability sales.

There is no doubt the end of the scrappage scheme will cause a sudden drop in new car sales, said MD Colin Bruder. However, focusing on Motability sales can help car dealers soften the sheer impact of this.

‘While Motability car sales are down during the recession, they have not fallen to the same extent as the overall market and it is proving to be one of the few sectors of new car sales that are recession resistant, if not recession proof.

‘Motability represents a huge portion of the new car market and one that offers a wide range of profit opportunities to the well-prepared dealer… it has the potential to take some of the sting out of the end of the scrappage scheme.’

He admits that some car brands have shied away from Motability, due to the competitiveness of entry-level pricing. But, equally, others are looking to maximise sales in it.

However, car dealers will only see maximum benefit if they help car dealers learn the distinct new skills needed to sell Motability models. These include aiding vehicle modifications and sorting through the extra paperwork associated with the scheme.

‘Motability is a specialised market and very few dealers find sustained success without some external help. It is a sector where we have been increasingly asked for advice and practical support during the recession.’

Tags: motability, network automotive, scrappage

This entry was last updated on Tuesday, February 2nd, 2010 at 11:09 am and is filed under News, Scrappage.