Our MHA Motor Dealer Report 2016 shows that the sector is very positive and optimistic about the next 12 months. However, the recent Brexit vote has thrown an element of uncertainty into the mix.
The report looks at Financial Performance Drivers, Future Industry Outlook, Operational Performance Drivers and other elements such as Social Media and Marketing Service Plans.
MHA Report Key Findings:
- Motor dealers are positive about their year end profitability.
- Over half of motor dealers believe that new car sales targets are achievable.
- 46% of motor dealers have noticed a decline in used car margins.
- Staff retention and staff recruitment are the top two cost areas that motor dealers are expecting to significantly increase in the next 12 months.
- 87% of motor dealers are intending to recruit in the next 12 months.
- Over 60% of motor dealers are looking to grow their business over the next 12 months.
- The majority of motor dealers have planned spend, over the next 12 months, of over £150k.
- 73% of motor dealers think that AFVs will gain significant market share, with 66% expecting this to happen within the next 10 years.
The full MHA Motor Dealer Report 2016 is now available.
Steve Freeman, Head of the MHA Motor sector comments: “It is good to report that prior to the recent Brexit vote there was a considerable amount of positive news and optimism in the sector, reflecting the level of sales volumes and growth in the last few years and also the considerable strategic activity which has been taking place. A good proportion of dealer groups are continuing to invest in the sector through developing existing sites and/or the acquisition of more franchises, sites or other dealers. Confidence levels have certainly remained strong throughout the first half of the year and the survey demonstrates this.”
Steve went on to say: “The underlying UK car market is clearly strong, but the Brexit uncertainty is very likely to have an adverse impact on the level of buyers changing their cars, as well as other operational uncertainties such as the stability of a dealer’s workforce, funding costs and the resultant level of profitability in the short to medium term. The sector is, however, extremely resilient and so it will be interesting to see how this pans out in the coming months and through the remainder of 2016 and into 2017.”
If you would like to discuss any of the issues raised in this report in more detail or you would like to speak with a member of our team, please contact: 01908 256706.