The global automotive industry plunged deeper into recession in 2019, with China leading the worldwide decline. CNN reported this week that; ‘some experts have even begun to speculate that the world may have reached "peak car'’', or the point at which global demand for vehicles begins an inexorable decline.
In the UK, it was a similar story, with the impact of Brexit uncertainty combining with societal pressures around mobility in general, as well as increasing concerns over climate change and air pollution.
In more positive news, the independent broker-led market continued to see double digit percentage growth. This reflects the changing nature of the market, as dealerships increasingly suffer tightening margins and challenges to the business model, with some dealer groups now operating as “brokers” under different branding in an attempt to escape the negative repetitional connotations of the dealership model.
At Pike + Bambridge, we operate a personal, low-pressure environment and we are training our team to be far more than call-centre operatives. We offer expertise that is necessary when operating at the level of vehicle and finance we support.
This Spring we are encouraging all of our clients who are company Directors to review how they run their personal vehicle, with huge advantages in the pipeline re the tax advantages for electric vehicles, and to a lesser extent, their hybrid comparatives. It is not a matter to take lightly however, with challenges around style of usage, charging points and certain model strengths and weaknesses to be considered.
Why all this is good news for you
With global car sales down, all manufacturers are fighting for your business. In an industry increasingly obsessed with volume over margin, consumers and businesses alike can win if they play the market intelligently. This is particularly the case in the premium end of the market that Pike + Bambridge specialize in.
As an example, this month, we are launching a partnership with Jaguar Land Rover for all of our clients who are members of three professional bodies; IoD Scotland, ICAS, and the Law Society of Scotland.
This means we can access offers such as the Jaguar I Pace, which attracts 0% company car tax from April 6th, at £499 per month with a comparatively modest deposit. This on a car valued at approximately £70,000.
See more in our recent blog for what this can mean for company directors and how they finance their cars.
Our professional clients trust us to use our proven expertise to guide them through the process of getting the new car they really want, without all the accompanying hassle.
We believe that busy professionals, like us, shouldn’t have to choose between dealing with the outdated system of buying a car in a dealership, and a faceless call centre with little control over the process. What other £40,000-£70,000 purchase do we make online to a company we may never have heard of or dealt with before?
Manufacturer Market Analysis
At Pike + Bambridge, we love the idea of a challenge to the status quo. The traditional methods of transport, as well as the traditional methods of buying your car, are under existential threat. This is good news. For too long, the industry has lagged behind others in regulatory sales practice, in transparency dealing with clients, and in its online offering.
Pending fines for large dealer groups from the FCA, leading to C-Suite exits, may only be the beginning.
It is past time for a change. We expect to see further dealership bankruptcies, and more consolidation, meaning the dealer marketplace will be increasingly dominated by volume-focused enterprises, often at the expense of service.
Why Pike + Bambridge?
Over the last 10 years across the UK, Pike & Bambridge has supported over 5,000 professionals through the often challenging process of getting the new car they really want. Our clients trust us to deploy our proven expertise and guide them through the many, sometimes confusing, choices they face in specifying, funding and acquiring their new car.
Doing so in a very personalised way, we are able to deliver what they really want while also freeing up their time, removing unnecessary stress and frequently saving them some money too.
