The number of dealers who see Brexit as the top threat to their business in 2019 has rocketed as the 29 March exit deadline approaches.
The latest quarterly Dealer Satisfaction Survey from Close Brothers found that 35% of dealers see Brexit as the top threat to their business compared to just 21% a year ago.
After a year in which new emission rules under WLTP and data regulations with GDPR impaced dealers’ business, it was hardly surprising that red tape was high on the agenda with 16% identifying it as a threat compared to 11% in 2018.
The perceived threat of an economic downturn dropped from 17% in 2018, to 8% for 2019.
More dealers are keen to focus on maintaining stability (14% to 24%), and one in six (35%) are keen to expand their offering to new types of vehicles. This reflects the increased sales figures for alternatively fuelled vehicles from the SMMT over the year.
Sean Kemple, director of sales at Close Brothers Motor Finance said: “Our quarterly Dealer Satisfaction Survey is a granular look at the current sentiment of dealers in the UK and provides us with real insight into current and future priorities of dealers nationwide. Despite many warning of post-Brexit gloom, the UK’s dealers remain resolutely optimistic about the future success of the sector.
“Of course the threats to the sector cannot be ignored, and it’s no surprise that we’ve seen increased dealer concern about legislation and stock availability in reaction to WLTP. Car manufacturing and registrations alike have suffered, and dealers’ bottom lines have subsequently done the same.
“But there is hope to be had. Ripe opportunities exist in expanding the forecourt to meet evolving consumer demand, be that new fuel types, new models, expanding the used stock selection, or an enhanced after-sales proposition. To seize these opportunities, dealers must establish themselves as a source of expertise and reassurance to customers.”
| Top opportunities for 2018 | Top opportunities for 2019 |
| Maintaining stability (14%) | Maintaining stability (24%) |
| Expanding offering to new types of vehicles (14%) | Expanding offering to new types of vehicles (16%) |
| New finance products (10%) | New finance products (6%) |
| Changing consumer behaviour (9%) | Changing consumer behaviour (4%) |
| Top threats for 2018 | Top threats for 2019 |
| Brexit (21%) | Brexit (35%) |
| Economic downturn (17%) | Legislation/Regulation (16%) |
| Legislation/Regulation (11%) | Stock availability (10%) |
| Changing consumer behaviour (8%) | Changing consumer behaviour (8%) |
| Increased competition (4%) | Economic downturn (8%) |
| Stock availability (3%) | Increased competition (6%) |
| Interest rates (3%) | Outlook for diesel cars (5%) |
| Outlook for diesel cars (2%) | Interest rates (5%) |