Some 98% of UK motor dealers are confident about business outlook for their dealership, with 63% reportedly ‘very confident’, according to a survey from Close Brothers Motor Finance.
In the aftermath of Britain’s withdrawal from the EU, a third of dealers cited Brexit as the biggest threat to their business over the next 12 months – a drop of 12% from the previous three months (47%). Contrastingly, 9% of respondents see Brexit as the biggest opportunity – a drop of 13% in the past three months.
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The survey also found that 13% of motor dealers are especially positive about the opportunities for business growth. A range of opportunities were cited for 2020, with 7% expanding their offering to new types of vehicles (namely electric cars), while 7% are keen to maintain stability.
However, there remains a portion of the market that is not entirely confident for the year ahead. One in 10 dealers said they are concerned about how the economic downturn will affect their business, while a further 7% said they are worried about stock availability.
“2019 was a challenging year for the motor industry,” said Sean Kemple, director of sales at Close Brothers. “The 2.4% drop in year-on-year new sales reflected the impact of Brexit uncertainty continuing to loom over consumer confidence.
“But the results of our Dealer Satisfaction Survey show that hope is far from lost. We’ve driven past the first bump in the Brexit saga, and dealers are excited about the growth of their business and the opportunities for expansion of stock.”
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By GlobalDataKemple said that used dealerships have seen a boost with drivers looking to cut costs – a trend that Close Brothers expects to continue throughout 2020. “With the petrol and diesel ban coming into effect in 2035, all eyes will be on the new government to help stabilise the industry as the market shifts, offering increased investment in infrastructure and clarity on regulation and taxes.
“Car dealers are the backbone of the car industry, so it’s encouraging to see high levels of confidence, but equally vital that they are properly supported. When they are, they’re perfectly placed to in turn provide valuable support and expertise to buyers.”
