How can the motor trade have an impact on pollution?

The pollution caused by some types of motor vehicles has been the subject of much pointed media commentary over the past couple of years or so.

Much of that was directed at the government, notably following their apparent confusion and about-turn over consumer advice relating to the purchase of diesel.

New cars sales affected

Although the final year-on-year sales figures for 2017 aren’t yet available, it seems likely that the calendar year will show a significant reduction in new car registrations than 2016.

It seems as if there is now a much greater consumer focus on buying good-second hand vehicles and less on new ones. This may be becoming visible to those in the motor trade industry and providers of car dealers’ insurance etc.

New versus old

Traditionally, some dealerships have invested heavily in promoting new vehicle sales. That will no doubt continue. If 2017 buying trends, however, continue into 2018 and beyond, it may be that increasing numbers of consumers will hold off purchasing that new vehicle until environmentally “Green” vehicles are available in numbers.

To put it bluntly, some buyers and even fleet managers might be reluctant to invest in vehicles of a type they fear the government might start to try and price off the roads over the next couple of years or so.

As such, some dealerships are going to perhaps need to re-balance their investment and focus between new and pre-used vehicles in general.

Why this is an opportunity

If that logic is valid, then it’s a short extension of reasoning to consider whether or not a dealership should also re-balance its pre-used sales focus away from conventionally powered vehicles onto electric and hybrid options.

True, that will be a challenge.

Given that there are only around 100,000 electric vehicles on the UK’s roads, the main inhibitor might well be the still relative paucity of such vehicles, whether new or used. It’s not tongue-in-cheek to say that building a sales focus that’s heavily dependent on the availability of non-existent vehicles might be, at best, “risky”.

Even so, there is clear evidence of that rarity – a near perfect alignment of consumer preference, government policy and environmental needs. Dealers might be advised to get ahead of the curve here to take advantage of that as indeed this is happening with some providers of insurance for car dealerships.

Driving forward a sales strategy that increasingly emphasises new electric vehicles will likely inevitably lead to an increased supply of used electric vehicles in due course. Overall, that will be a huge help both to early adopter dealerships and of course, our precious environment.

Aston Scott is a specialist motor trade insurance broker. We’d be pleased to offer assistance with any insurance-related issues that might arise from the above. Please contact us today on 03300 085045 to see how we can help.

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