Inchape trades ahead of expectations: Inchcape is expecting to close 2009 slightly ahead of expectations.  In a pre-close statement it said total revenue for the eleven months to November 2009 was 11.4 per cent below last year in actual currency and 17.5 per cent below last year in constant currency.
Revenue down - Like-for-like revenue was down against last year by 9.4 per cent in actual currency and 15.6 per cent in constant currency. In the second half of 2009, the group performance was boosted by strong new car sales in the UK, generated by the scrappage scheme. Inchcape said its aftersales business, which represents half of group gross profit, was also performing well.
New car sales - "Our UK retail business is enjoying a stronger than expected fourth quarter: New car sales are significantly ahead of last year as we continue to benefit from the scrappage incentive scheme." The good performance was also due to the VAT increase in 2010 pulling forward demand in the premium sector, something which may impact on sales in 2010.
Margins increase - Inchcape said margins on used cars continued to be exceptionally high. But the group remained "cautious" for 2010 and does not expect any global car industry recovery to start until "well into the second half of 2010". André Lacroix, Inchcape group chief executive officer, said: "In 2009, the group has improved customer service globally and we have gained share in many of our markets, while cutting costs and reducing inventory to mitigate the effects of an unprecedented global downturn in the car industry.  "While we continue to expect market conditions in 2010 to remain challenging, the group is well placed to benefit from the market recovery and to take advantage of industry consolidation opportunities in the medium term."
Inchcape will announce its annual results for the year ended 31 December 2009 on 10 March 2010. (Motortrader, 15.12.09)

Average used car values have decreased for the third month running, according to BCA’s latest Pulse report. The overall average value for cars sold in November was £5,903 – a fall of £118 (2%) compared to October.  A further point also came off the CAP comparison, which now stands at 94.45% of Clean figures.  Values remain well ahead year-on-year by £1,080 (22.3%), although as prices were beginning their recovery 12 months ago, it is likely that this figure will reduce in the months ahead.  BCA’s communications director Tony Gannon said “With this slight slowdown, the marketplace appears to be resuming a more typical pattern of activity.  "In previous years, September was often a peak in the annual price cycle, with values falling slightly in the following months of October and November and that is exactly what has happened this year.”  Volumes of fleet/lease and nearly new cars sold in November were broadly in line with those seen in October, although there was a fall in P/X volumes – perhaps reflecting the more difficult retail picture being reported by dealers.  Average values fell in two of the three main product sectors – fleet and lease values fell by £457 to £7,159 (down 6%).  Nearly-new values decreased by £2,191 to £16,969 (down 11%) - although there was a shift in model mix away from higher value premium models that will have had an effect.  Meanwhile part-exchange values bucked the trend by increasing from £2,585 to £2,649 – a modest increase of £44, but still equivalent to a 2.5% rise.  Factor in the average 2% drop recorded across all sectors and the part-exchange sector has outperformed the market by 4.5 points.  The continued demand in this sector shows that there are plenty of motorists still needing budget-priced transport.  (AM online, 15.12.09)

An online car broker predicts that one in four used cars will be bought online by 2015 - Auto Ebid says its online car sales have increased 99.6% year to date.  Such a trend may lead to a quarter of car transactions being made online by 2015, it claims.  However the company remains a tiny part of the car market. Founded in 2003, it claims to have processed 2,500 successful auctions.  The company operates a reverse auction system, which invites car dealers to bid for customers' business while the customer's details are kept secret.  (AM online, 15.12.09)

Scrappage boost Its critics have said it is too inflexible - "When it was announced, AAP represented a genuine opportunity to help the automotive industry," said Peter Luff, chairman of the MPs' committee.  "But it is now December and not a single loan or loan guarantee has been made.  "It is up to the government to prove us wrong, but they must ensure that funds are released to companies very quickly."  While no AAP funds have been released, UK car sales have recovered since the summer, helped by the government's scrappage scheme.  The £400m initiative gives consumers £2,000 off the price of a new car if they trade in a vehicle that is at least 10 years old.  It was launched in May and is due to end in February 2010 at the latest.  The latest industry figures showed that UK car sales rose by 57.6% in November compared with a year earlier. (bbc.co.uk) (Autowired, 15.12.09)