Motor Trade Insurers, Quote Me Today Urge Caution as Dealer Profits Soar

KENT, UNITED KINGDOM -- (MARKET WIRE) -- 09/01/10 -- Leading motor trade insurance company, Quote Me Today are warning car dealers not to be complacent after celebrating an increase in their net profits by 18.5% in the first half of 2010. This resulted in a GBP 12,000 increase on the profits from the first half of 2009.

The impressive figures were recently published by the ASE and show that car dealers have had a good year so far. In spite the global economic crisis, new car sales have increased rapidly with a GBP 76,645 rise in net profits at the beginning of this year.

However, motor trade insurance experts, Quote Me Today are showing support to Chief Executive Officer of the ASE, Mike Jones' argument that although this is an excellent outcome, the year is unlikely to end on the same note.

Jones has been quoted as stating that it has been an incredibly impressive outcome for dealers in spite of the stagnant economic situation and also the threat of a double dip. However, he also pointed out that the scrappage scheme was credited with encouraging most of the sales throughout last year and this has now finished.

Furthermore, the problem lies in overhead absorption, which dipped quickly this year in comparison to last year. Although the net profits have increased massively, the average input from the service department to overheads has dropped by GBP 13K in the last year.

A spokesperson for Quote Me Today, who specialise in comparing quotes from a range of insurers for motor traders insurance, commented: 'It is important for motor traders to celebrate this great profit without becoming complacent. The market is still very changeable so it is important to plan ahead and be prepared for the more unpredictable latter half of the year. Having a good insurance policy is a good way for traders to ensure they are protected in case of any other unexpected expenses'.

In July, figures showed a drop in monthly car sales for the first time in a year, as at the same time last year dealers were enjoying a boost in sales because of the car scrappage scheme so it could be a sign of things to come.

About Quote Me Today:

Quote Me Today are a Kent based broker with years of experience in providing risk solutions for both the personal and commercial lines markets. In an industry where competitive rates, risk knowledge and customer confidence are essential, Quote Me Today offer these through a panel of insurers with a wealth of industry experience. Our relationship with these insurers allows us to quote competitive rates coupled with professionally tailored cover which gives us the required edge in placing your business at the right price without prejudice to your policy requirements. Visit their website at www.quotemetoday.co.uk for an instant quote.

Contacts: Quote Me Today Michael Denby 01227 285562 [email protected]