December 2020

50 AFTERMARKET DECEMBER/JANUARY 2021 BUSINESS www.aftermarketonline.net areas where the new three-tier Coronavirus warning level is pegged at the highest level. It was also announced by the Education Secretary Gavin Williamson that GCSE and A-Level exams will be delayed by three weeks in 2021 as a consequence of the virus, which could affect apprenticeship start-dates. 13 October: UK unemployment running at highest rate in three years, redundancies highest since 2009 While garages continue to be busy as a result of the MOT backlog created by the exemption, they could see more and more customers forced to tighten their belts, as the UK unemployment rate rose to its highest level in three years, and redundancies rose to their highest level in more than a decade. According to the latest stats from the Office for National Statistics (ONS), UK unemployment increased to 4.5% in the three-month period to August. In the previous quarter, the rate was pegged at 4.1% in the previous quarter. At the same time, it was also revealed that redundancies were running at their greatest rate since 2009. In total, the ONS estimated that 1.5 million people were unemployed between June and August, with 227,000 redundancies. 20 October: MOT demand drives 82% increase in Motor Ombudsman Garage Finder searches The Motor Ombudsman’s Garage Finder recorded an 82% rise in searches in the third quarter of 2020 when compared to the preceding three-month period, with MOT demand being a major driver of interest. Between 1 July and 30 September, the online tool was called on by users to locate a UK-based car retailer or repairer that is accredited to the Ombudsman’s Service and Repair and Vehicle Sales Codes of Practice a combined total of 66,187 times, compared with 36,290 in the previous three-month period. It also represented a slight increase on the 65,198 seen between January and March. The near doubling of user searches mirrors increased consumer demand for MOTs following the lockdown period where many garages temporarily closed their doors, and 56% of motorists postponed the annual test using the government’s six-month exemption, according to a recent Motor Ombudsman poll. Motorists have also been encouraged to get their car tested before the end of the exemption in order to ease the pressure on MOT stations, which resulted in a significant rise in throughput compared to what is ordinarily seen in a typical year. According to the figures from the DVSA 310,000 more MOTs and retests were carried out in August this year compared to the same period in 2019, whilst a total of 3.7 million MOTs took place this September, which is around half a million higher than the 3.25 million monthly average seen during the 2019-2020 financial year. Commenting on the findings, Bill Fennell, Chief Ombudsman and Managing Director of The Motor Ombudsman, said: “With many MOTs still outstanding across the country, combined with the demand for regular routine maintenance, our Garage Finder will also continue to prove particularly beneficial to help find an alternative Motor Ombudsman-accredited business in their local area, should the consumer’s regular garage be fully booked. With daily searches already averaging in excess of 700 in October, user traffic is showing no signs of slowing as we enter the last quarter of 2020.” For more information, visit www.TheMotorOmbudsman.org/gara ge-finder 20 October: Garages in Wales remain open despite COVID-19 firebreak Garages were able to continue to operate in Wales despite the firebreak lockdown, although car use was likely to reduce significantly which could reduce levels of trade for workshops in the short-term. Under the new restrictions, all non- essential shops in Wales were forced to close, along with pubs, cafes, and many other businesses. Places of worship were shut apart from for weddings and funerals. Recycling centres, libraries and other public spaces also had to shut. Similar to the lockdown, people were only able to go out for exercise, but as before in Wales, there was a 5km limit on how far people can venture. Gatherings for people outside of the household, inside or outside, would be banned for the duration of the restrictions. However, as they provide an essential service, garages were able to remain open. The restrictions stayed in place until 9 November. 22 October: Public transport wariness boosting second- hand car sales surge? Demand for used cars in September was running 15% higher than in 2019, new data from AA Cars has shown, with concerns about public transport due to COVID-19 seen as a major motivator. Car use was around 92% of normal during September, while use of National Rail only reached 40% of the expected level. Some areas saw very steep surges in the period September 2019-2020: Crawley 102.3% Glasgow 96.7% Cardiff 70.6% Cheltenham 63.9% Bournemouth 52% Preston 51.8% Mansfield 51.3% Kingston upon Hull 48.7% Sheffield 38.4% Basingstoke 34.4% Commenting on the figures, James Fairclough, CEO of AA Cars said: “The used car market continues to offer an enormous amount of choice to drivers at all price points, and changes in