David James, chief financial officer of MotoNovo Finance has told dealers to take a positive approach to Brexit, arguing that the immediate economic fears of a ‘No’ vote have begun to subside.
Immediately following the referendum result, the value of the pound fell to a 31-year low, and the UK’s credit rating was downgraded from AAA by all three major credit rating agencies.
However James cited rising consumer spending as evidence of a new optimism.
The latest consumer confidence survey from market research company GfK saw consumer confidence rise to -7 in August from -12 in July, which he said bodes well for the motor retail sector.
James said: “The immediate Brexit decision caused a collective sharp intake of breath economically. Ten weeks on and the wheels are slowly turning to establish what this unprecedented decision means…However, the UK consumer has brushed themselves down and seems ready to spend.”
Admitting that the value of sterling remained lower than pre-referendum values, James argued its stabilisation against the US dollar at $1.31, and the euro at €1.18, in August, is reason for brokers to remain positive.
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James stated that these economic developments, along with a recovery in share prices, and high-profile site investments from Wells Fargo and GlaxoSmithKline are ‘encouraging signals’.
While he warned that the risk of technical recession may still remain, the MotoNovo chief financial officer urged dealers to focus.
James said: “Right now, dealers should be looking ahead with considered confidence and promoting the affordability of their wares.”