Riscx Insurance, specialist insurance brokers in the motor trade industry, have expressed concern for dealers about the rise in used car values. Finding the right stock for the right price, to then go on and sell, is becoming more difficult and Riscx believe extensive protection for these cars is even more essential than before.
Riscx have been protecting dealers for years – negotiating with providers for tailor-made motor trade insurance policies on their behalf. Their services are set to be in popular demand as the need for quality protection increases because of rising used car values.
MotorTrader.com recently reported that a lack of quality used cars on the market is effectively forcing up values. This means auto traders are buying used cars that are in greater need of repair and then channelling more energy, and funds, into refurbishment – which is damaging ROIs. eQuoteDirect are offering their services to dealers who need to protect these investments.
The brokers are encouraging dealers to cover themselves, especially if they are purchasing stock based on estimated sales, instead of guaranteed orders. The cars on the forecourt have become more valuable through their own rarity – traders cannot afford to incur damages to them.
A spokesperson for Riscx commented:
‘The used car market is becoming increasingly competitive as traders contend with each other to acquire the most profitable stock. Once acquired, that stock needs protection – perhaps now more than ever. That is where we can come in and broker a policy for dealers – one that is custom built specifically for their business.’
Meanwhile, there are encouraging signs of a healthy increase in January new car sales in the USA, which Riscx are viewing with some positivity. The industry on a whole is constantly changing but the adaptable brokers are always on standby to help their clients secure adequate motor traders insurance policies.