Automotive insolvencies fell to 0.08% in April compared to 0.12% in 2009 according to the latest Insolvency and Late Payment indices from Experian, the global information services company.
As well as seeing a year-on-year drop, the automotive industry halved the rate of insolvencies recorded last month, from 0.16 down in March to 0.08 in April 2010.
The financial strength of the automotive industry also saw a slight improvement year-on-year, going up to 79.67 from 79.35 in April 2009.
Payment performance amongst automotive businesses saw a slight improvement from 16.57 in April last year, dropping to 16.01 in April this year, but the improvement was not as significant as it has been in previous months resulting in motor traders shifting from being the third fastest payers to the tenth.
Mark Nuttall, general manager of Experian’s Automotive business, said: “The decline in insolvencies and improvement in payment performance in April has meant that the financial strength score of the industry has remained buoyant this month.
“It seems the other sectors are catching up with automotive dealers in understanding that paying bills late can be detrimental to their business credit scores, business relationships, lines of credit and subsequently the business as a whole.”