Calls for car dealerships to reopen as closures costs Treasury £61 million a day

This topic contains 33 replies, has 9 voices, and was last updated by  Oscarmax 1 month, 1 week ago.

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  • #113621 Reply

    Brydo
    Participant

    Every day dealers remain closed costs the Treasury £20 million in lost tax revenue, and £41 million in furlough payments

    New car dealerships must to be allowed to reopen “as a matter of urgency”, according to industry bosses, who highlight that the Treasury is losing £61 million every day they remain closed.

    VAT, Vehicle Excise Duty (VED) and other taxes on private car sales generate £5.4 billion of tax revenue for the taxman every year. The Society of Motor Manufacturers and Traders (SMMT) estimates 23 per cent of this (£1.24 billion) will have been lost by the end of May as a result of the UK’s coronavirus lockdown.

    Each additional day new car dealerships remain closed sees the Treasury lose £20 million in taxes while payouts to the car industry’s 590,000 furloughed retail workers are seeing the Treasury spend £41 million a day.

    Classed as non-essential retailers, the earliest date on which the UK’s 4,900-strong network of new car dealerships might be allowed to reopen is 1 June. The SMMT argues that car showrooms are one of the easiest types of retailer in which to maintain social distancing, and that the industry is ready to put the proper measures in place.

    The UK automotive sector has already lost £8 billion as a result of lockdown, with new-car registrations down 97.3 per cent in April. Production lines are now starting back up again, though, and the SMMT claims there is pent-up customer demand that can be fulfilled.

    Mike Hawes, chief executive of the SMMT, said: “Government measures to support the critical automotive industry during the crisis have provided an essential lifeline, and the sector is now ready to return to work to help the UK rebuild. Car showrooms, just like garden centres, are spacious and can accommodate social distancing easily, making them some of the UK’s safest retail premises.

    “Allowing dealers to get back to business will help stimulate consumer confidence and unlock recovery of the wider industry, boosting tax revenue and reducing the burden on Government spending. Unlike many other retail sectors, car sales act as the engine for manufacturing and reopening showrooms is an easy and relatively safe next step to help get the economy restarted. With every day of closure another day of lost income for the industry and Treasury, we see no reason for delay.”

    The only person who got all his work done by Friday was Robinson Crusoe.
    Anything i post over three lines long please assume it is an article lol.

Viewing 25 replies - 1 through 25 (of 33 total)
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  • #113622 Reply

    Brydo
    Participant

    There is no reason why dealerships couldn’t open using some sort of appointment system.

    The only person who got all his work done by Friday was Robinson Crusoe.
    Anything i post over three lines long please assume it is an article lol.

    #113626 Reply

    Oscarmax
    Participant

    Still not clear if car dealership will open June 1st ?

    https://www.fleetnews.co.uk/news/manufacturer-news/2020/05/22/coronavirus-automotive-industry-calls-for-end-to-dealership-closures


    In 2005 I suffered a brain injury which has left me with mental and physical disabilities.
    Unfortunately I do get confused and get things wrong, so I apologise in advance.

    #113630 Reply

    Briggsy
    Participant

    There is no reason why dealerships couldn’t open using some sort of appointment system.

     

    That would require some sort of common sense maybe its in a short supply at the moment because you’re right there isn’t a good reason why showrooms cant openers you say with a system in place.

    #113632 Reply

    Oscarmax
    Participant

    There is no reason why dealerships couldn’t open using some sort of appointment system.

    The government has allowed dealership to operate online, may be they believe  this is sufficient at this phase in the lockdown?


    In 2005 I suffered a brain injury which has left me with mental and physical disabilities.
    Unfortunately I do get confused and get things wrong, so I apologise in advance.

    #113634 Reply

    ChrisK
    Participant

    All the times I’d been to a car sales dealership in normal times they have always been sparsely populated and staff have always outnumber customers so something that would be easily fixed.

    My thoughts though is the government is paying 80% of staff wages and it cost staff 20% plus just getting to work with bus, taxi, fuel, congestion charges and lunch your quids in staying at home.😁

     

    #113640 Reply

    Oscarmax
    Participant

    All the times I’d been to a car sales dealership in normal times they have always been sparsely populated and staff have always outnumber customers so something that would be easily fixed. My thoughts though is the government is paying 80% of staff wages and it cost staff 20% plus just getting to work with bus, taxi, fuel, congestion charges and lunch your quids in staying at home.😁

    The sales staff will only get a basic plus commission so imagine financially they are now beginning to feel the pain


    In 2005 I suffered a brain injury which has left me with mental and physical disabilities.
    Unfortunately I do get confused and get things wrong, so I apologise in advance.

    #113661 Reply

    rox
    Participant

    The government should allow car showrooms to reopen from Monday or risk production lines standing idle and thousands of workers remaining on furlough, Vauxhall’s boss has told Sky News.

    Mr Norman, Vauxhall’s boss, said that despite the prime minister’s call for companies that can operate to return to business, they would not make cars they are unable to sell.

    Nobody in the modern industry builds vehicles in the hope of finding a customer, you build a vehicle for a customer, and it’s absolutely vital that the United Kingdom, the four nations, develop customer orders so we can get Ellesmere Port back into production as soon as possible.

    Currently showrooms are closed under the government shutdown of “non-essential” retail.

    Vauxhall believes they can be reopened safely as many dealerships are large spaces, often with outdoor areas.

    There are 4,900 new car showrooms in the UK and automotive retail employs 590,000 people, the bulk of them currently furloughed.

    The entire car retail sector, including after-sale servicing, generates turnover of more than £200bn.

    Mr Norman said the continued showroom closure is illogical given garden centres are open, and estate agents have been allowed to resume conducting viewings in people’s homes.

    “By allowing, for example, estate agents to open, which are relatively confined spaces, we have a little bit of difficulty in understanding why retail car showrooms, which are much bigger places, cannot reopen, and if necessary, we can have them open simply upon appointment,” he said.

    “What we are asking is for the UK government now to allow us to reopen at the very latest from Monday, and not have to wait until the month of June.

    “That really is vital for the UK motor industry, not just for Vauxhall.”

     

    I have to agree in that it’s totally illogical. Is there another motive, maybe a green one, one set by climate change activists or the UN in agenda 21, Used to stop the masses having cars as it causes congestion and the roads need to be for key workers not the general public for ever. as covid has shown us a new better way.

    It’s coming as part of this new normal, like with air industry closed down and holidays are part of that..

    you’ll need 35 days for a 7 day holiday so the amount of juice won’t be worth the squeeze. or most will be priced out of the market.. while they jet about everywhere.. same with cars..

    Roads are being closed to all cars in lots of cities and what about the disabled then, who cannot walk or ride a bike, you not heard one thing in 2 months from them about us.. Who cannot exercise, so could not go out and sit on a bench. you’d get a fine. I can use a hosepipe during a ban as i’m disabled. so that should not apply to us either.

    It was being enforced by the police and was always only goverment advice not actual law.

    The 2 metre rule is not law it’s advice.. This is where we have gone, where advice has become enforcable by the so called law enforcers.. who making it up themselves.. erroding our freedoms and rights..

    #113665 Reply

    Ian Price

    I know it is off the subject, but why are the Zoo’s not open, plenty of space there and easy to manage.

    #113667 Reply

    Mike

    I went to spinal injuries hospital at Sheffield on Wednesday this week  I passed a big MG dealer it was fully open doors open was hot day and salesman at the desks etc

    #113743 Reply

    Oscarmax
    Participant

    I have just been looking at the Motability Scheme  site there has been some changes, things seem to be looking up, there is mention of dealerships opening on June 1st, from what I am reading it would appear Motability are gearing up.


    In 2005 I suffered a brain injury which has left me with mental and physical disabilities.
    Unfortunately I do get confused and get things wrong, so I apologise in advance.

    #113771 Reply

    ChrisK
    Participant

    I went to spinal injuries hospital at Sheffield on Wednesday this week I passed a big MG dealer it was fully open doors open was hot day and salesman at the desks etc

    My eldest grandson is looking for his first car and rang Heritage VW who’s HQ is in Salisbury where they had a car he was interested in, the car had been sold, but was told by them that their/our local VW dealer, Heritage of Bristol, was the only dealer in their group that is open if he wanted to pay a visit so it seem some dealers are open

    Found a car elsewhere so didn’t go to the Bristol branch to see if that is indeed true.

    #113774 Reply

    Saintsman

    If the scheme opens up on June 1st will they start with Q2 and go to Q3 on July 1st or will the have a four month “quarter”?

    #113775 Reply

    gothitjulie
    Participant

    I know it is off the subject, but why are the Zoo’s not open, plenty of space there and easy to manage.

    There’s a problem with not knowing which animals can catch the virus & not knowing how it would affect them, this is important espacially for the critically endangered species. To qualify this more we know that cats can contract the virus and spread it between each other.

    We know that primates can die from the virus too, so the Zoo being closed makes sense with our current limited knowledge.

     

    #113796 Reply

    rox
    Participant

    If the scheme opens up on June 1st will they start with Q2 and go to Q3 on July 1st or will the have a four month “quarter”?

    They won’t have a list up as far as i understand, until they worked threw the backlog of applications for new cars already placed before lockdown and no one really knows when that  likely is to be..

    This info below is from 15th of may from mb site

    While we expect to see dealers gradually opening in England from 1 June, the impact of weeks of COVID-19 disruption means the Scheme will not open immediately for new applications.

    So we can work through backlogs in both vehicle sales and purchases, we will take a phased approach for applications. Priority will go to around 43,000 orders that had already been placed before lockdown. We will aim to resume these and arrange delivery as soon as possible, subject to this being done in a COVID-19 safe environment.

    Once this is underway, we will start to invite applications from customers who have had their leases extended during the lockdown, in order of their original end of contract date. When possible, we will also re-open the Scheme to brand new customers.  As soon as we are able to start accepting new applications we will publish prices on the website through our car search tool.

    While we know this news may be disappointing, we ask for your patience as we restart our operation after weeks of dealer closures and business disruption. It will be vital to phase these steps carefully until we are really confident about sales of returning vehicles. We will only be able to lift all restrictions on future customer orders when we know that we can sell used cars in large numbers in a properly functioning marketplace.

    It may be some months before the Scheme has caught up with applications for renewing customers, so in the meantime, customers should expect to see more extensions to existing leases over the next few months. We will also continue to support customers with lease extensions should new cars take longer to be delivered owing to worldwide disruption in manufacturing or supply of parts.

    Our focus remains on keeping customers mobile, and safe. Together with our Scheme partners, we have continued to support customers throughout lockdown, and look forward to building back our wider operations. This will include working closely with our dealer partners to build confidence in a safe and secure dealership environment.

    We are closely monitoring the situation, especially with regard to the changing vehicle supply situation, and will provide regular updates here on our website. Our Frequently Asked Questions are updated regularly, so please keep an eye on these; if you have a question, you may well find the answer here.

    #113852 Reply

    Oscarmax
    Participant

    Boris has just announced car sales showroom are going to open June 1st


    In 2005 I suffered a brain injury which has left me with mental and physical disabilities.
    Unfortunately I do get confused and get things wrong, so I apologise in advance.

    #113859 Reply

    Bryan

    Motability will drag their feet to get up and running again.

    #113910 Reply

    Andy
    Participant

    My dealer has been keeping me updated from home. I think my Allspace is sitting half built in a factory in Mexico currently.
    As I’m currently on the government ‘shielding’ list I am in no hurry to pick it up when it arrives. I think that is going to be a discussion between me, the dealer and motability when the time comes if the government advice is the same.

    #113911 Reply

    rox
    Participant

    My dealer has been keeping me updated from home. I think my Allspace is sitting half built in a factory in Mexico currently. As I’m currently on the government ‘shielding’ list I am in no hurry to pick it up when it arrives. I think that is going to be a discussion between me, the dealer and motability when the time comes if the government advice is the same.

    I guess it could depend on the date you was due to exchange and when the car actually arrives at the dealer.

    I would imagine when that time comes, you’ll have only a few options. Motability’s plan as far as we have heard so far is..

    The government has announced that they will allow car dealerships to reopen their showrooms on 1 June in England. As a result, Motability will start ‘Phase 1’ of their own plan to reopen the scheme.

    New Motability cars that are already at dealerships waiting to be handed over to customers will be their first priority.

    Around 5000 brand new vehicles are ready and waiting to be delivered to Motability customers, and now that dealerships have had the go ahead to reopen Motability specialists will be allowed to register and hand over these vehicles ‘subject to this being done in a COVID-19 safe environment’.

    Motability have also made money available to dealerships to cover the cost of Personal Protective Equipment (PPE) and sanitisation when preparing and handing over vehicles to customers.

    After that cars already ordered and not at dealers before lockdown and i’m guessing that will be phase 2.

    Imo you could go ahead if another named driver can pickup the car, or you would have to pick it up yourself as ppe etc is being paid for by motability, so might be ok as a (last resort). If you do need to go out, you’ll need to use a vehicle, I would imagine.. Like for a hospital visit etc.

    You might just have to cancel the order and extend your current lease, till you ready and feel it’s safe for you to do so.. or leave the scheme for now and hand the current car back. If you not driving the car and it is not being used for along time already, you’d save the money.

    Not something i’d do as i’m fully dependant on the car to go out when needed.. but is an option for some..

    I doubt the dealer will keep the car for an unspecified amount of time after it does arrive, if you unable to collect it.. but alot is unknown and as no new prices will be released until new orders are going to be accepted by MBO, thats a sticky situtation imo.

    My new car is at the dealers was due to exchange in april.. The fact that there will be no prices for this Quarter worries me, if then ap’s drop because of covid (when new prices eventually come out) I will feel i’ve been robbed. but ap’s could go up as well.. no one knows..  but this time If i cancel I won’t be able to re-order until when???  applications open for orders which could be months or weeks no one actually knows right now..

     

    #113969 Reply

    Craig

    I called my dealer and they have told me early next week as sold cars are a priority. Just waiting for the call or email to confirm I can collect.

    #113971 Reply

    Oscarmax
    Participant

    I called my dealer and they have told me early next week as sold cars are a priority. Just waiting for the call or email to confirm I can collect.

    My Motability salesman needs a bomb under him, he is the most tired salesman I had the misfortune tp meet, everything is contact Motability they know more.


    In 2005 I suffered a brain injury which has left me with mental and physical disabilities.
    Unfortunately I do get confused and get things wrong, so I apologise in advance.

    #113976 Reply

    Craig

    Dealer just called me back I’m booked in to collect on Wednesday morning..

    #113978 Reply

    Elliot
    Participant

    I’m not picking mine up until I see the new price list.

    #114033 Reply

    Oscarmax
    Participant

    I called my dealer and they have told me early next week as sold cars are a priority. Just waiting for the call or email to confirm I can collect.

    My Motability salesman needs a bomb under him, he is the most tired salesman I had the misfortune tp meet, everything is contact Motability they know more.

    Had a phone call from the dealership this morning from one of the sales staff, on Monday they are going to contact Motability for an update.

    The dealership do not accept payment through the card reader due to fraud in the past, at the time of ordering they supplied us with their bank transfer details, we have to pay the full AP prior to collecting the vehicle and entering the Motability PIN


    In 2005 I suffered a brain injury which has left me with mental and physical disabilities.
    Unfortunately I do get confused and get things wrong, so I apologise in advance.

    #114041 Reply

    Jeff Schofield

    Our dealer lost our car just before lock down! He’s going to attempt to “find” it Monday and then contact us. Though I don’t hold much hope as he was poor beforehand.

    #114042 Reply

    Elliot
    Participant

    That is poor Jeff.

Viewing 25 replies - 1 through 25 (of 33 total)
Reply To: Calls for car dealerships to reopen as closures costs Treasury £61 million a day

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