Twice as many car dealers see Brexit as threat as six months ago

An industry report has shown an overall decline in the confidence of dealers as the March Brexit deadline looms.

An industry report has shown an overall decline in the confidence of dealers as the March Brexit deadline looms.

The results from the Close Brothers Motor Finance’s Dealer Satisfaction Survey showed a shift in the proportion of dealers who said they were ‘very confident’ in the previous quarter, to ‘fairly confident’ now. Around 45% of dealers said they were ‘very confident’ (down from 60% in the previous quarter), while 48% said they were ‘fairly confident’ (up from 35%).

Brexit has now become an concern for 50% of dealers, according to the research. This figure is up from 35% in the previous quarter, and is double that of 6 months previously (26%). The issue of Britain’s impending departure from the European Union was listed a as a worry by five times as many dealers as the next issue on the list (the ban on diesel – 10%).

As Brexit rises in concern, only 4% of dealers have concerns about an economic downturn (down from 14% six months previously). Similarly, stock availability concerns affected just 4% of dealers, dropping from 10% the previous quarter.

Sean Kemple, director of sales at Close Brothers Motor Finance, said: “Brexit is absolutely having an impact on dealers and consumers at the moment, there is no doubt about this. All eyes are on Westminster as we wait in hope of a satisfactory resolution to the ongoing uncertainty that we are currently facing.

“However, despite a steep rise in the proportion of dealers who currently see this as a threat, along with the other challenges such as the market’s confusion over fuel type, the vast majority are confident about the long term, with two-thirds able to point to specific opportunities in the months ahead.”

In January the Society of Motor Manufacturers and Traders repeated its warning on the risks of a no-deal Brexit to the UK car industry, after figures revealed that investment in the sector nearly halved in 2018.