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Discounts and pre-registration bonus keeping some dealers buoyant

Manufacturer incentives and pre-registering have become part of the current new car market, believes a KPMG motor industry expert.

John Leech, partner in KPMG’s automotive practice, discussed yesterday's publication of the SMMT's November car registration figures and said that in the face of rising unemployment and low consumer confidence the sector has "remained surprisingly resilient".

He added: “Dealer profits have come under pressure in recent months so dealers will be looking to capitalize on manufacturers’ incentive plans to be announced in the run-up to Christmas which will be key to their profit aspirations – even though, it is expected that most dealers will record significant profit falls this year.

“Some dealers have prospered however – they tend to be those that have benefited from the shift to smaller fuel efficient cars or have been affiliated to manufacturers who have offered big discounts to purchase and pre-register vehicles.”

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