Most U.K. Car Dealers Positive About 2017 Prospects

LONDON – Inventive finance deals and continuing consumer appetite are driving U.K. car dealers’ optimism about growth in 2017.

Despite some industry predictions of a contraction in last year’s record sales, a new survey reveals dealers are far more upbeat about their growth potential.

Figures from auto-finance specialist Close Brothers Motor Finance’s Dealer Satisfaction Survey show most dealerships are positive about their business prospects this year, with 65% expecting growth.

Of 514 new- and used-car dealerships asked why they were optimistic about their growth prospects, 58% cited the proliferation of new finance products as the main factor, up from 47% in the previous review in November. On top of this, 42% of dealers listed changing consumer behavior as a reason for their optimism, while 46% pointed to the increasing affordability of cars.

However, dealers still recognize the wider economic risks that could stifle growth in 2017, with 58% citing a potential recession as the biggest threat, up 20% from November’s survey. In addition, 41% of dealers said the U.K.’s vote to drop out of the European Union also was one of the main threats to business growth, up 4%.

“It’s promising to see such a large number of dealers positive about the prospect for their business over the coming months, particularly given the heightened economic and political uncertainty that has become the norm as of late,” says Paul Kaye, director-sales and marketing for Close Brothers Motor Finance.

“With the fall in the (British) pound, making manufacturing of cars the cheapest it has ever been, it is important that smaller dealerships remain competitive against their larger manufacturer-sponsored franchises.”