Credit crunch claims Exeter Bentley car dealership
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"Credit crunch claims Exeter car dealership
Wednesday, November 05, 2008, 06:51
ONE of Exeter's most exclusive car dealers has gone bust, with the loss of 19 jobs.
The empty forecourt and showroom at Bentley West Country were a stark sign of the economic downturn which has claimed its latest victim in the city.
Rows of gleaming luxury cars — some worth more than £200,000 — which had been proudly on show just 24 hours earlier were gone, taken away by manufacturers and finance companies.
The credit crunch has been blamed for the demise of the prestige car dealership on Marsh Barton — which went into administrative receivership yesterday — and there are warnings others could follow.
The Echo revealed yesterday that the company's fate was hanging in the balance.
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Joint receiver Andrew Sheridan, of Baker Tilly, said: "Everyone is more than aware of the current crisis facing much of the motor industry, but the speed of the downturn at the luxury end of the market has been very severe.
"In the last three months, plummeting second hand values of luxury cars, combined with a drying up of inquiries for new vehicles, has caused Bentley West Country to run out of cash.
"Unfortunately, it has ceased trading with the loss of all 19 jobs."
Staff had been paid up until the end of October.
Bentley West Country's stock of around 50 luxury and performance cars — both new and used — featured models from Bentley, Rolls Royce, Ferrari, Aston Martin, Porsche, Mercedes-Benz and BMW.
Demand for such vehicles has fallen sharply due to the credit crunch and cuts in City bonuses.
Mr Sheridan revealed the dealership had received no inquiries about new cars in the past three months, while it was making losses on some used cars as a result of plummeting values.
He warned it was "inevitable" other car dealers would go out of business, pointing out that insolvencies among motor traders were up 18 per cent in the three months to the end of September.
Tim Jones, chairman of Devon and Cornwall Business Council, said: "This was a very predictable consequence of the downturn in the market. The discretionary spend, particularly as a result of bonus payments, has been almost completely axed and the luxury car market has been very badly hit. I don't expect to see a recovery in that market for a considerable period of time."
Peter Vosper, managing director of car dealers Vospers, said: "The market is tough — I don't think anybody would want to pretend any differently.
"But some people are being hurt more than others. With great respect to Bentley, that's very much the top end of the market and I wouldn't base any scenarios on the Bentley result.
"There are still a lot of buyers out there and small cars are going very well.
"We sold more Fiats and Mazdas in September than we did last year."
Reacting to the failure of Bentley West Country, John Rigby, Exeter City Council's director of economy and development, said: "Obviously, this is a worrying sign, as there are about 5,000 people employed in car sales and related industries on Marsh Barton. Having seen the data nationally about car sales dropping dramatically, it is worrying because the economy of Marsh Barton and therefore Exeter is quite heavily driven by car sales."
But Mr Jones said: "Marsh Barton is one of the most dynamic areas of business in Devon and Cornwall. Its ability to change with the market has seen it through many market cycle changes and I have no doubt that it will do so on this occasion."
The receivers are seeking buyers for the company's £1m premises and Mr Sheridan said there had already been some interest from other motor retailers."
pastrana72 said:
Drove past last night, Sadly the showroom and grounds sit empty and quiet, where there was once the most stunning selection.
They did have a lot of very high end stock sitting around last week.
Shame.
Time to grab a bargain then - make them an offer they can't refuse."My name's Terry Tibbs good night and good luck" They did have a lot of very high end stock sitting around last week.
Shame.
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