Competition between dealers is set to increase due to the increased purchasing power consumers received from the Consumer Rights Act, according to James Broadhead, chief executive officer of Close Brothers Motor Finance.
With consumers now offered greater security throughout the purchase, repair and return process, dealers would need to find new ways to differentiate themselves from their competitors, Close Brothers said.
Go deeper with GlobalData
Access deeper industry intelligence
Experience unmatched clarity with a single platform that combines unique data, AI, and human expertise.
Broadhead said: "With all dealers meeting a minimum standard, consumers will have less points of difference dealership to dealership, and they may focus more heavily on the value of the deal, rather than how they are being treated, or will be treated, by the dealer.
"From the industry’s standpoint, legislation which encourages and elevates best practice can only improve the reputation of dealerships as a collective, and dealers should view the changes as a positive step towards more honest and positive relationships with consumers."
As a result Broadhead said dealers should be looking for new ways to enhance the customer experience beyond the Consumer Rights Act rules in order to move ahead of the competition.
US Tariffs are shifting - will you react or anticipate?
Don’t let policy changes catch you off guard. Stay proactive with real-time data and expert analysis.
By GlobalData
