11:44 am, April 8, 2021
A snap poll has revealed 53 per cent of dealers believe new car sales will be higher in Q2 than the same quarter in 2019, or pre-Covid.
The research from The Motor Ombudsman asked franchised and independent dealers accredited to its Vehicle Sales Code questions ahead of showrooms reopening next week.
However, 29 per cent said they believe new car demand would be comparatively lower and 18 per cent said they think it will stay the same.
For used car sales, more than two thirds (70 per cent) of dealers asked predict that this sector will grow in April to June, 2021.
Despite largely high spirits about increases in demand, there were still concerns identified in the survey.
More than half (53 per cent) were concerned that footfall could be affected by the number of people still on furlough and the impact that could have on affordability.
This was followed by social distancing, and 36 per cent of respondents said they were worried about how this will make it difficult to host events and 29 per cent worried about how it would impact the sales process.
Changes to the plug-in car grant were also high on the list, with 32 per cent noting that they believed this will result in motorists showing less interest in green models.
Bill Fennell, chief ombudsman and MD of The Motor Ombudsman, said: ‘It has been valuable gaining a first-hand view of what car retailers within our accredited business network are expecting during the coming weeks when it comes to sales performance, and the main hurdles that they are likely to face as showroom doors reopen.
‘Although challenges clearly remain with the much-anticipated return to face-to-face sales, the results of our snap poll nevertheless paint an encouraging outlook.
‘This bodes well for businesses up and down the country after they have been waiting patiently to greet customers once again, and to get back to being able to interact with them on the forecourt.’
