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Stock availability is still a problem for dealers even though some improvements have been seen.
This is the conclusion of a research from Startline which found that 62% of dealers reported a problem with stock availability, although 12% said availability was improving.
Stock availability was also cited as the biggest challenge for the future of used car retail on Startline Used Car Tracker, mentioned by 70% of dealers, followed by a 55% switch to electric vehicles (EV) and a 45% increase in compliance requirements (up from 30% last month).
More than a third (35%) of car dealers say 2023 is better than they expected.
Startline April Used Car Tracker shows that 15% are maintaining profitability, 10% say the economy is showing signs of recovery and 9% rate that consumer confidence is strengthening
A third, 32%, say sustaining gains is difficult, 27% believe consumer confidence remains low and 10% think the economy is still sluggish.
Overall, 20% of dealers said they felt more optimistic about the used car sector than last month while 27% were more pessimistic.
Paul Burgess, CEO at Startline Motor Finance, said: “It is perhaps a measure of how low expectations in the used car sector and the wider economy are that a minority of dealers say this year has, so far, been anything but great. what a pleasant surprise.
“Of course, even if the conditions are not as bad as some experts predict, they are still tough.
“Our view is that the economy is doing slightly better than expected but many people’s personal finances continue to deteriorate.
“Inflation remains very high, especially for some everyday items, and wages are not keeping pace.
“There have been some credible predictions that the situation will improve in this regard towards the end of the year but really, we are still waiting for the moment when things stop getting worse.
“Given this situation, the used car sector remains very resilient but there is no doubt that most dealers have had to work hard to make money and are constantly looking for new ways to maximize their business potential against a difficult backdrop.”
“Stock shortages prove a double-edged sword – getting a vehicle that can be retailed is a constant battle for dealers, but poor supply also keeps values high.
“Additionally, the impact of the recent dramatic drop in EV values has clearly raised some fears about the electrification process, while concerns about compliance may be a result of Consumer Duties, which are fast becoming a concern for many auto retailers with FCA. deadlines are fast approaching in April and July.”
Startline Used Car Tracker is compiled monthly for Startline Motor Finance by APD Global Research. This time, 300 consumers and 60 dealers were examined.
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