Less than 72-hours after releasing betting on the next automaker to issue a major recall, bookmaking company Paddy Power were forced to pay out yesterday on Honda after the car-making giant announced a widening of its recall due to potentially deadly air bags.
Honda were considered relative outsiders on the bookmakers list and were available at long odds of 16/1. Scores of shrewd punters took advantage of the bookies generous odds triggering a payout in excess of €7,000.
Paddy Power said “We didn’t expect another recall to follow so soon after Toyota’s announcement. That said, we obviously were caught napping and fully deserved to have our pants taken down. Needless to say we’ll be keeping a very close eye on this betting moving forward”
Paddy Power continue to take bets on the next car manufacturer to issue a major recall (without Toyota and Honda). Japan’s sixth largest automaker Mitsubishi Motors is now the bookies 4/1 favourite followed by Nissan at 6/1 and Daihatsu and Mazda at 8/1.
Next Car Company to recall?
4/1 Mitsubishi Motors
6/1 Nissan
8/1 Daihatsu
8/1 Mazda
10/1 Volvo
10/1 Audi
12/1 Hyundai
12/1 Ford
14/1 Dodge
14/1 Fiat
16/1 Volkswagon
16/1 Vauxhall
18/1 BMW
20/1 Chrysler
20/1 Mercedes-Benz
33/1 Daewoo
33/1 Alfa Romeo
40/1 Hummer
50/1 Skoda
80/1 Ferrari
Auto Trader magazine named the Ford Focus the most popular vehicle of the decade in a new poll, beating out the Ford Fiesta which took second place, the BMW 3 Series in third, and the Ford Mondeo which came in fourth. Rounding out the poll was the Vauxhall Astra in last place at number five.
Other awards bestowed on car models over the last decade by the magazine included the dream car won by the Bugatti Veryron and the most environmentally friendly car, or ‘greenest,’ the Toyota Prius. While it is possible that your neighbour may own the Prius, the Bugatti is truly a dream car owned by the likes of Jenson Button and Simon Cowell which is also possibly why it also won the award for most overpriced car of the last decade.
The top motoring personality award went to Jeremy Clarkson, the top accessory was the clever Baby on Board sign with the car freshener following in a close second, and the best celebrity motor went to the Range Rover.
Also polled were the best value for the money cars which saw the Fiat Panda take first place followed closely by the Skoda Superb and Toyota Aygo in second and third place respectively. Rounding out the list in fourth and fifth place were the Kia Ceed and the Citroen Xsara Picasso.
Last month new car registrations increased by over 57% as buyers took advantage of the cash for bangers scheme and the now lowered VAT rate.
The scrappage scheme will end when funding runs out of at the close of February. So far it has been used on 21.6% of about 160,000 vehicles that were registered in November. This is over 50% more than in November of 2008.
Society of Motor Manufacturers and Traders (SMMT) chief executive Paul Everitt stated that the car registration increase shows that the incentive scheme has been successful with customers.
The terms of the scheme allow buyers to receive a £2000 discount if they also trade in a vehicle that is ten or more years old.
Everritt estimated that the scheme has about £125m of funding left. On Wednesday, he asked the Government to think about extending the deadline for the scheme.
However, the Business Secretary Lord Mandelson said that the industry will have to deal with normal market conditions once again, which quashed hopes among many that the scheme would be extended.
The 57% increase was a large jump over previous months such as September which had an 11% increase and August which saw only a 6% increase.
For the most part, the large increase was a result of private buyers taking advantage of the scheme.
Yet, even with the huge increase the total sales figures for November are still down by about nine percent when compared to the total sales of last year.
2009 has been a turbulent year for the vehicle tracking market which has seen many tracking companies fall by the wayside as the recession and more specifically the credit crunch hit. But what will be the legacy of 2009 and what does 2010 hold for the industry.
Lease Financing Availability
One of the biggest problems to affect the vehicle tracking sector in 2009 was the difficulty in obtaining lease finance for customers wanting to buy tracking systems. Lease finance spreads the cost of a tracking system over the duration of the contract period and is often the preferred way to buy vehicle tracking, in most cases leasing requires no capital outlay and offers return on investment from the word go.
The availability of business leasing is improving, especially in the SME sector but not for tracking suppliers. www.TrackCompare.co.uk surveyed the major lease underwriters and found that although the lending criteria for potential customers has relaxed, the criteria for vehicle tracking providers has not and many underwriters are limiting their activities to ‘the big 5’ tracking companies.
The underwriters have reported significant losses in the vehicle tracking sector and now see it as a high risk market as should the tracking company go under, the tracking system becomes unusable and there are is little tangible value that can be recovered.
Customer Confidence Damaged
One of the biggest casualties of 2009 are without doubt the customers that bought vehicle tracking systems that were subsequently switched off when their parent companies closed. Many customers have been left with debts of thousands with no tracking system to use.
Tracking horror stories have spread like wildfire and customer confidence in tracking systems and their providers has been seriously affected. Efforts by tracking companies to offer ‘no risk’ financing systems have gone some way to restoring confidence but often means higher costs for the customer and their long term feasibility is in some cases questionable.
What Does 2010 Hold For Tracking
The vehicle tracking market is expected to double by 2012 which is great news. The tracking sector does however have a big job to do in restoring the confidence in potential buyers and suppliers should expect them to be more cautious and meticulous in their choice of partner.
The job of the smaller players and new companies in the tracking market will be more difficult in 2010, being unable to offer lease finance will make selling to companies who need a monthly payment option harder, unless they have enough financial backing to underwrite the upfront costs themselves.
This will inevitably affect choice and competition for customers, tracking pricing has fallen significantly in recent years due in part to cost reductions in technology and data but the key driver has without doubt been competition.
Despite this, from the perspective of potential tracking customers there has never been a better time to consider tracking. There are more products, more finance options and more competition in the market than ever before. By choosing the right tracking partner a business can revolutionise its operation overnight and the massive benefits that vehicle tracking systems can bring should not be overshadowed by the problems of 2009.
Car scrapping is a booming business, and Lord Mandelson has duly addressed its importance, by announcing an investment of a total of £400 million to the industry as an extension to the scrappage scheme is to become a much needed reality.
The new phase of the scheme will continue till February 2010. This will allow car owners to trade in their decade-old cars for a new one, and they will receive a hefty discount of £1950 on their new ride.
The age restriction of the old cars has also been relaxed for six months. The scheme will allow nearly 400,000 car owners to get new wheels, although nearly a million car owners are expected to apply.
According to Janet Connor, managing director of RIAS, this is going to attract a huge number of motorists due to the ongoing recession. She thinks the discount of nearly £2,000 is likely to draw the attention of many car owners who are thinking of getting a new vehicle.
CEO of the Society of Motor Manufacturers and Traders, Paul Everitt went further, by stating that this new scheme will help to develop a strong and sustainable economy, by creating an upsurge in demand, and providing a wider consumer access.
The flagging motor industry is talking with the Government in hopes that they can get the scrappage scheme continued into February 2010, a task that would require about £150m more from Mr Browns pocket.
The scheme was started on May 18th, at which point the Government said it would run into February or until their funding ran out, which is expected to happen sometime between the end of October or the beginning of November.
The Government has already pledged £300m for the scheme.
The SMMT is afraid that new legislation that requires higher first year Vehicle Excise Duty rates on all vehicles with larger engines, starting in April of next year, will stop consumers from purchasing new cars, which the extended scrappage scheme could help.
According to the SMMT, the scrappage scheme has already been able to produce growth in the auto sector, after 15 months of declining sales reports in the marketplace for new cars.
To date over 100,000 cars have been bought with the scrappage scheme, and an additional back order of over 100,000 is banked.
Auto Trader magazine named the Ford Focus the most popular vehicle of the decade in a new poll, beating out the Ford Fiesta which took second place, the BMW 3 Series in third, and the Ford Mondeo which came in fourth. Rounding out the poll was the Vauxhall Astra in last place at number five.
Last month new car registrations increased by over 57% as buyers took advantage of the cash for bangers scheme and the now lowered VAT rate.
According to Janet Connor, managing director of RIAS, this is going to attract a huge number of motorists due to the ongoing recession. She thinks the discount of nearly £2,000 is likely to draw the attention of many car owners who are thinking of getting a new vehicle.