Compared to the July to September period last year, business failures in the sector have dropped by 18.8%, totalling 65.
This coincides with the gradual decrease in business failures that has been seen throughout the year, with Q1 seeing 89 failures and Q2 72.
Rob Whalley, managing director of Experian’s automotive division, says: “The decline is a positive sign for the industry and comes despite the fact that car sales are continuing to fall.
“However, the industry is still recovering from the highest number of failures ever during January to March this year.”
Overall, the year-to-date figures show a 8.7% increase in business failures compared to the first nine months of 2005.
Whalley continues: “It indicates that while the situation is improving, the industry is not out of the red quite yet.”