Findings from Close Brothers Motor Finance have found 96% of dealers are confident about business prospects in the market going into 2020.
Their dealer satisfaction survey also found 58% were “very confident.”
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With a new government and Brexit extension offering a potential end in sight for political turmoil, the research found “maintaining stability within business” has become the biggest opportunity in the coming months.
Research found the proportion of dealers who see stability as the best opportunity for their business has doubled in the previous quarter to 14% from 7%.
A similar number felt Brexit could offer opportunities for their business, more than doubling in the past three months from 6% to 13%.
12% of dealers also see expanding their offering to new types of vehicles as consumer demand continues to shift, as an opportunity for 2020.
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By GlobalDataThough potential for stability may be increasing, almost 74% of dealers cited Brexit as a potential problem for their businesses, up 43% from in the previous quarter.
However, one in four dealers did not forsee any threats to their businesses going into the New Year.
Speaking on the findings, Seán Kemple, director of sales at Close Brothers Motor Finance said: “It’s been a tough year for dealers, with new car sales taking a hit despite a surge in electric and hybrid cars. But, the high proportion of dealers who say they are confident about the year ahead might be the first glimpses of light at the end of the tunnel. The possibility of political and economic stability, even in the short term, is propping up confidence levels.
“However, we are not out of the woods yet. The potential consequences of Brexit continue to keep almost half of dealers up at night. Clearing away the question marks surrounding this, one way or another, will be welcomed by them. But, it’s not the only issue facing the sector that needs to be addressed by the next government, whoever that will be. Confusion around fuel type, not enough investment in the infrastructure for electric vehicles, legislation and regulation, as well as nervousness about an economic slowdown continue to affect consumer confidence and will still be there long after Brexit is out of the way,” he added.
