SMTA Monthly Bulletin July 2023

Your monthly news round-up of the Scottish Motor Industry

JULY 2023

SMTA ANNUAL DINNER & AWARDS 2023

With Special Guest Speaker –Mike Brewer

Surrounded by motors all his life as his dad was heavily involved in car customizing, Mike discovered his passion for motoring as a teenager and knew this would be his career.

He entered the motor trade, quickly building a reputation for being sharp and honest, and had the biggest 4×4 centre in the south of England up and running in no time, importing cars from around the globe.

Mike embarked on his television career through pure luck. He answered a friend’s telephone and discovered he was talking to a television producer. A long chat and a few anecdotes ensued and he was hired for the first series of Deals On Wheels. His success in this role led him into the presenter’s position on Driven for Channel 4, followed by Auto Trader, Pulling Power, Deals on Wheels, Wrecks to Riches, and Revved-up as well as several other non- motoring programmes for Discovery Channel and ITV.

A night not to be missed! Why don’t you come along to our Annual Dinner on 26th October to listen to Mike’s entertaining motor trade stories!

THURSDAY 26TH OCTOBER

HILTON GLASGOW, GLASGOW

BOOK YOUR TICKETS HERE

OR EMAIL KAREN THOMPSON FOR FURTHER INFORMATION!

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USED CAR MARKET HAS BEEN RESILIENT DURING FIRST HALF OF 2023 – REPORT

The used car market showed signs of a steady recovery during

That’s according to a wide-ranging analysis by Cox Automotive, which revealed that data captured by its Manheim Auction Services, Dealer Auction and NextGear Capital brands over the first half of the year pointed to a resilient marketplace buoyed by strong demand and improved year-on-year performance..

Consumer demand for used vehicles has continued to grow in line with Cox Automotive’s forecasts, despite new vehicle supplies slowly returning to near-normality. And while the new market has had a more pronounced return, it’s come from a much lower base.

Some of the growth comes from the

the first six months of

increased supply of de-fleeted vehicles into the marketplace as the lease and rental sector has moved to replenish stock.

Experts at Cox Automotive believe wholesale activity is showing the traits that will define the market. Comparing the past six months to the same period in pre-pandemic 2019 shows that the average used vehicle entering the wholesale market today is older, carrying more miles, costs more, is selling faster and commanding a stronger margin, they said.

In particular, NextGear Capital data shows the average used vehicle is 23 per cent older (7.5 years in H1/23 vs 6.1 years in H1/19) and carrying 13 per cent more miles (68,671 vs 60,848).

2023.

Manheim’s data paints a comparable picture. Its average wholesale sold price of a used vehicle was 33 per cent higher than in H1/19 and three per cent closer to Cap Clean (96.4 per cent vs 93.8 per cent).

Meanwhile, the average retail margin as captured by Dealer Auction has risen by four per cent vs H1/22. (NB: Retail margin data wasn’t captured in 2019.)

Used cars are selling slightly more quickly than they did before the pandemic according to NextGear Capital, at 60.3 days per vehicle in H1/23 vs 61.5 in the first six months of 2019.

DEMAND FOR STOCK FUNDING TO PAY FOR TOP USED CARS IS ON THE UP, SAYS FINANCE FIRM

cent rise in dealers with access to its stock funding product and a 27 per cent increase in the number of dealers active in using the product.

Many auction houses have brought in promotions to try to combat the knock-on effects of the cost-of-living crisis, it said.

which are squeezing cashflow for many.

That’s according to V12 Vehicle Finance, which says a rise in promotions is causing competition at auction houses to rise.

V12 is reporting a 109 per cent annual growth in stock funding revenue, a 17 per

As well as the rise in vehicle prices driven by a lack of supply, independent dealers are also under pressure to manage rising overheads and growing infrastructure demand such as installing forecourt EV chargers – both of

V12 said that having previously been wrongly seen as a product exclusively for cash-poor dealers, it was seeing a growing interest in stock funding from car dealers who were simply looking to act quickly after finding quality stock or those looking to free up cash for other business investments.

More and more independent car dealers are turning to stock funding to give them the edge in bidding for quality used vehicles.

HSE CONCERNED THAT 21 MOTOR REPAIR WORKERS KILLED SINCE 2017

employed, the HSE data shows more than half were employees of motor repair businesses.

In the same period almost 4,500 reportable work-related non-fatal injuries have also been recorded by the HSE at businesses involved in the sale and repair of motor vehicles.

With more than half of those deaths occuring while working under a vehicle, the HSE has highlighted this as a particular risk when a vehicle is incorrectly supported.

The annual death rate in the motor vehicle repair industry is 1.62 deaths per 100,000 workers – around four times the average rate across all industries. In total, 21 workers in the motor vehicle repair industry have been killed in the last five years – 13 of which were caused by work under a poorly supported vehicle.

Fiona McGarry, an HSE inspector who works with the motor vehicle repair trade said: “One death is too many – to us, these tragedies could easily have been avoided, but they keep happening. Sadly, the phrase we hear too often is ‘this will only take me a minute’. It is crucial the correct equipment is used when

working under vehicles.”

As Britain’s workplace regulator, HSE is officially notified of work-related fatal and certain non-fatal accidents across England, Scotland and Wales. Alongside those 13 deaths , there are many more non-fatal injuries and near misses following work under poorly supported vehicles, it said.

McGarry said HSE is "becoming increasingly concerned about the scale of the issue", and failure to learn from near misses or injuries will risk lives.

“Some of these issues relate to smaller garages – places that are hard to reach. We have always had a strong relationship with the motor vehicle repair sector, and we respect the expertise of these small businesses.

“But as the issue has persisted, we needed to raise awareness of the issue together."

Although some of those killed were self-

Julian Woods, chief executive of the Garage Equipment Association, has backed the HSE's alarm-raising. “We all need to be thinking of not only ourselves but everybody’s health and safety. If we see an unsafe act we should raise it up and not just turn a blind eye and keep walking," he said.

He added: “We consider health and safety to be of the upmost importance to our industry and any loss of life should be considered an unacceptable situation.

“We drive to improve health and safety not only for our members but in the industry as a whole. It’s all too easy to think it will never happen to me or it will only take a second to sort, so skip safety items to get the job done quickly, but these statistics are unacceptable."

All work-related fatalities are reportable to the HSE, as are certain specified injuries such as fractures, serious burns, head injuries causing any loss of consciousness, and accidents which result in a worker being unable to perform their normal work duties for more than seven days.

IMI TO DEBUNK "OUTDATED PERCEPTIONS" WITH AUTOMOTIVE CAREER CAMPAIGN

The professional body said the automotive sector is facing a 20 year high in vacancies and so this new campaign has been put together to debunk the outdated perceptions that are at the heart of the recruitment challenges.

Central to the campaign will be real voices telling real stories about their positive career experiences.

There is an urgent need to encourage more people to think about a career in automotive, with IMI data suggesting 111,400 roles need to be filled in the next 10 years.

OVER 200 OCCUPATIONS ACROSS THE SECTOR

There are currently 218 occupations across the sector, with technological advances –from Advanced Driver Assistance Systems (ADAS) and electric to connected motoring and online sales - creating opportunities that go far beyond traditional perceptions of working in automotive.

The Institute of the Motor Industry (IMI) is calling people in the automotive industry to share their career stories as part of its new Perception recruitment campaign.

The Health and Safety Executive has urged motor repair workshops to ensure their processes and practices are fit for purpose as its data shows that 21 workers in the sector have been killed in incidents since 2017.

MOT FORECAST VOLUMES AUGUST 2023

TRADE SNIPPETS

Used LCV prices remain consistent as buyers become more selective

Article courtesy of AM Online

Kia UK named in 2023 Best Workplaces for Women list

Article courtesy of Motortrader

Genesis names dealer groups to create agency sales retail network

Article courtesy of CarDealer Magazine

What were the fastest selling used cars of the last year?

Article courtesy of CarDealer Magazine

2030 petrol and diesel ban in doubt as Government reconsiders net zero strategy

Article courtesy of AM Online

Customer service ‘main source’ of discontent with EVs

Article courtesy of Motortrader

TYPE

TOP 10 MARQUES

TOP 10 CARS

SMTA produces a quarterly magazine to all our members, if you haven’t got one yet our Territory Account Managers will be visiting your garage soon with a copy for you.

If you’d like your garage to feature please contact: karen.thompson@smta.co.uk

SMTA CONTACTS

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Donna Ruck – 0131 331 5510

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Moira Gaynor – 0131 331 5150

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Claims and Enquiries – 0131 331 5512

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SMTA CONTACT HOURS CHANGE

Karen Thompson – 07922 079889

Events & Media Manager

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Wendy Hennessy – 07974 380140

Scottish Motor Trade Association Ltd., Palmerston House, 10 The Loan, South Queensferry EH30 9NS

Telephone: 0131 331 5510

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