Reasons To Be Cheerful About The Motor Trade
- May 3, 2017
- Business Insurance
- by Chris
According to the latest Close Brothers Motor Finance’s Dealer Satisfaction Survey, 65% of car dealers are optimistic about their business prospects. It’s good news not least because the health of the car sales sector has knock-on effects throughout the industry as a whole.
It’s interesting to look at why car dealers are feeling so positive.
58% of dealers were excited about the new finance options coming on stream at the moment. In 2006, 45% of new cars were bought on finance. In 2016 it was approaching 80%. It’s clear that dealers see opportunities for further growth in this area and think the new finance options will help them.
Other big reasons for optimism are dealers’ sense of changing consumer behaviour – 42% gave this a reason. Another is the increasing affordability of new vehicles – 46% gave this as their reason. (Interestingly, only 25% of dealers gave this as their reason the last time Close Brothers Motor Finance did this survey, which is a big increase.)
Of course, while overall optimism is high, dealers did sound notes of caution. The biggest threat they saw to their businesses was recession. 58% of dealers said their trading performance would be affected if the UK was to enter another recession and consumer spending was hit. This was a rise of 20 percentage points since the last survey, which is an interesting observation. Brexit is seen as another threat, with 41% of dealers concerned about this, a rise of 4 percentage points since the last survey.
But overall, the positives outweigh the negatives and it seems there are many reasons to be cheerful about the motor trade at the moment!
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