Reg Rix, Managing Director of Netcars.com, Outlines the Impact That the Proposed Government Changes to MOT Testing May Have on Motor Dealers

    MANCHESTER, ENGLAND, August 15, 2011 /24-7PressRelease/ -- Some independent car dealers may see this as a money-saving opportunity. A longer period between tests means less outlay on updating the MOT certificates of current stock and more cash in their pocket.

Yet attracting buyers may not be as straightforward as before. Even though dealers may have religiously looked after their stock, consumers might show extra caution if an MOT hasn't been conducted close to the selling period of the vehicle. In normal circumstances, a vehicle with at least three to six months MOT left on it is a strong pull for a buyer. However, should the law change take place, it means that car dealers could sell a vehicle that hasn't been professionally looked at for over 18 months, which may put some prospective buyers off.

Some dealers may actually get a new MOT completed, even though they are not required to by law and will be financially no better off, just to provide added value in their selling pitch and peace of mind to the buyer.

Also, MOT testing has historically been a stable source of income for franchise dealers through their MOT and service centres and a key tool for attracting new customers. While their car is in the workshop being tested, customers tend to browse the showroom and provide the dealers with an opportunity to sell.

If the law is passed, dealers that currently have an MOT and Service centre will have to push existing sales opportunities and add-ons even harder - such as increasing the number of extended warranties they sell or increasing car finance & insurance penetration to bring in extra revenue. Equally, they could just raise the price of an MOT.

A reduction in the frequency of MOTs will also see a higher a number of unsafe vehicles on the road. In the year 2009/10, 37.25%* of all class 4 vehicles (cars, light vans etc) failed MOT tests, while 46.3%* of class 7 vehicles (long wheel-based vans etc) also failed to pass.

These figures clearly indicate the high volume of unfit vehicles already on our roads. Extending MOT periods will only increase this further with the result being insurance premiums continuing to rise as more accidents occur.

This presents dealers with another issue. Increased car insurance premiums could conspire to 'price-out' many potential buyers from owning a vehicle, or owning the vehicle they want, meaning dealers will have to work even harder to market themselves and entice prospective customers."

For more information please contact:
Rachael Ireland or Becky Roberts at Tangerine PR
T: 0161 817 6600
E: [email protected]

www.Netcars.com is owned by Manchester-based company, JLR Digital. The management team is headed up by brothers Reg and Louis Rix, who between them have over twenty years experience in the used car industry. Airtours founder, David Crossland, is chairman and chief financial backer of the organisation.

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