Stock shortages emerge as the biggest worry for dealers in the year ahead as a result of the pandemic and shortage of semi-conductors in production.
That’s the key finding of the Dealer Satisfaction Survey from Closer Brothers Motor Finance which found that almost a third (31%) of motor dealers see the lack of stock availability as the biggest threat to their business.
Dealers also cite the coronavirus recovery or the prospect of another as a continued threat, with over a quarter (28%) stating it’s a concern, whilst the economic downturn and unemployment is a threat for one in ten (10%) dealers.
Despite the threat of lack of stock availability, dealers appear to have an overall optimistic outlook for the short-term future, with well over half (59%) of dealers saying that they feel ‘completely confident’ about the next six months.
Seán Kemple, managing director of Close Brothers Motor Finance, said: “While we may start to see the semiconductor shortage easing up, the industry impact has been severe. There is a limited choice of vehicles that people can order right now, which in turn is channelling consumers toward searching elsewhere for the car that they want.”
“Smaller dealers may have trouble keeping their doors open due to stock challenges. The increased demand contrasted with limited supply is driving the industry into difficulty, and there’s a real possibility that a domino effect could cause the second half of the year to be even more volatile.