Dealer insolvencies rise

Time 8:35 am, August 21, 2012

JULY saw a 41.7 per cent increase in car dealer insolvencies compared to July last year, figures from Experian reveals.

The firm reports the automotive sector saw 0.14 per cent of its population fail during July, with 51 businesses going under.

It was one of the few sectors to see insolvencies increase when compared to 0.11 per cent in June 2012 and 0.10 per cent in July 2011.

During July, 1,776 companies became insolvent, compared to 1,962 companies in July 2011.

The biggest improvements came from the UK’s largest firms, over 501 employees from 0.15 per cent last July to 0.08 per cent this year and also smaller firms with 11 to 25 employees – from 0.26 per cent last July to 0.19 per cent this year.

Max Firth, managing director, Experian Business Information Services, UK&I said: ‘Since March this year, when the insolvency rate peaked at 0.11 per cent, it has remained fairly stable – between 0.08 per cent and 0.09 per cent.

‘The lack of any real increase is clearly welcome and this picture is unlikely to change in the near future.’

James Batchelor's avatar

James – or Batch as he’s known – started at Car Dealer in 2010, first as the work experience boy, eventually becoming editor in 2013. He worked for Auto Express as editor-at-large and was the face of Carbuyer’s YouTube reviews. In 2020, he went freelance and now writes for a number of national titles and contributes regularly to Car Dealer. In October 2021 he became Car Dealer's associate editor.

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