Worrying Times For The Motor Industry?

From 1st July 2007 the UK banned smoking in enclosed public places with as many as 600,000 people forecast to quit smoking as a result. This article looks at if charging people to drive will have similar results for the Motor Trade.

In The Beatles classic song Taxman the lyric goes, “We’ll tax your feet”. Whilst the government hasn’t yet decided to do this it seems the introduction of “pay as you drive” schemes may soon be hitting the roads of the UK but what impact (if any) will this have on the UK Motor Trade.

Well there appears to be a few factors that road users might want to consider:

1. If you’re a driver who drives infrequently or at less busy times you could end up paying less.

2. Or you might drive an average number of miles but due to you driving at rush hours (on you way to/from work or school) you will end up paying more money.

3. You may want to use public transport more often
4. You and your friends may set up a car pool scheme so you take it in turns to drive.

5. If you spend a lot of time on the road travelling to see friends and family maybe you won’t be able to visit them as often as before.

6. If you spend time travelling for work maybe you won’t be able to visit customers as much or worse still increased transport costs may mean your less competitive or jobs have to be cut.

And what about people in the Motor Trade itself?
If the smoking ban just announced makes people stop smoking then maybe forcing people to pay more to drive will mean people will simply drive less often. Therefore less cars are needed, less people are needed to service and repair them and jobs are lost in the Motor Industry.

Of course these are all what if’s as nobody really knows what impact this decision will have on the transport system, the motor trade or indeed motor trader insurance.

If maybe a positive move with a journey to work being halved due to less vehicles on the road. It may mean a change in the opening hours for schools or businesses so not everyone is fighting to get to and from work as the same time as the school run is being done.

It may mean more money is invested in public transport so we have buses, trains, tubes and other forms of transport that are reliable and we ‘d be happy using.

Or of course it may mean nothing changes apart from the fact that we have less money in our pockets if the results of this survey conducted by Northern Counties Insurance Brokers are anything to go by.

People were asked what impact will having to pay per journey have on you?

– 40 % said no impact as they couldn’t live without their car

– 13 % said they would stop driving altogether

– 6 % said they would drive less often

– 21 % said they would use public transpoty more often

– 11 % said they would car share to cut costs

– 5 % said they would walk more often

– 3 % said they would still drive as often but at different times

Whatever your thoughts are on the governments new “pay to drive” schemes the chances are it will happen and the impact on the motor trade could be massive.