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Motability could help car sales post scrappage

Motability sales could help dealers to bolster new car sales when funding for the scrappage scheme ends, said motor industry consultancy Network Automotive.

The company said Motability offers a “recession-resistant route to sales but is underexploited by some dealers”.

Managing director Colin Bruder said: “It is probably inevitable that there will be a sudden drop in new car sales when the scrappage scheme ends but Motability could be one way for some dealers to create a soft landing for themselves.

“While Motability car sales are down during the recession, they have not fallen to the same extent as the overall market and it is proving to be one of the few sectors of new car sales that are recession resistant, if not recession proof.

Bruder said some manufacturers and dealers say they have pulled back from the Motability sector because pricing is very competitive at the entry point. However, others are working hard to maximise sales.

He added dealers keen to commit to Motability needed to learn new skills such as how to market to potential customers, enable vehicle modifications where required and how to operate scheme paperwork.

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