Motability sales could provide dealers with a ‘soft landing’ in new car sales when funding for the scrappage scheme is expected to end next month, says Network Automotive.
The company said that it offered a potentially recession-resistant route to sales, but was underexploited by some dealers.
Managing director Colin Bruder said: “It is probably inevitable that there will be a sudden drop in new car sales when the scrappage scheme ends, but Motability could be one way for some dealers to create a soft landing for themselves.
“While Motability car sales are down during the recession, they have not fallen to the same extent as the overall market and it is proving to be one of the few sectors of new car sales that are recession resistant, if not recession proof.
“While some dealers already maximise the opportunities for Motability, others do not, and there is certainly potential for them to generate more business.”
Bruder explained that as the economy crawled out of recession, Motability could provide a means for committed dealers to access ongoing, profitable business.
However, dealers who were keen to commit to Motability needed to learn new skills such as how to market to potential customers, enable vehicle modifications where required and how to operate scheme paperwork, added Bruder.