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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.
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Hope they find your car Jeff,
My new car (first on scheme) was delivered to dealer 1 week before lockdown.
Unfortunately, as i live in wales it looks like i have another 3 week wait until dealers open up here
Just made a round trip of 150 miles to a VW dealership in Hereford for my grandson to collect his nearly new car and looked the dealer was fully staffed and all the new rules posted on the doors about cleaning hands, keeping your distances ect.
We were not allowed into the showroom but assume all the staff are in in readiness for Monday.
Did the deal and paperwork in the outside car park where his car was parked up. The car had been sanitised before hand and he said he could not get in the car and show us the workings but left us to have a look at it at our leisure. He also apologised for not being able to test drive the car but they give a 30 day exchange anyway if your not happy with the car.
All in all looks like things could get back to some sort of normal with car sales next week.
Thanks 🙂 Yes rather frustrating especially as the car was apparently delivered to the dealer 10 days before lock down. I contacted him twice in those 10 days but each time he didn’t think it has arrived!?! Only on the day before did he confirm it was lost, shoddy at the least. I will put it down to the stress of COVID-19 etc so have always been pleasant… But my patience has & is being tested haha
Had a call from the dealer, phase 1 car due just after the lockdown to be available from this week, then there is a cut off point then stage 2 (not quite sure about date salesman to quick on the phone), as mine was not due until May 29th I am in the stage 2 and can expect my car end of June/early July.
Unfortunately I have suffered a brain injury and occasionally I get confused and often say the wrong thing.
Look on mb website it’s been updated . Phase 2 will be starting next week in england . We, in scotland are on hold lol but I dont mind , as long as everyone stays safe . Stay home if you’re nicola stay alert if you’re boris lol.
New car day and look at the weather.
Look on mb website it’s been updated . Phase 2 will be starting next week in england . We, in scotland are on hold lol but I dont mind , as long as everyone stays safe . Stay home if you’re nicola stay alert if you’re boris lol.
Scott I am at the very back end of the phase 2, I was due to change 29th May
Unfortunately I have suffered a brain injury and occasionally I get confused and often say the wrong thing.
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