11:12 am, February 20, 2023
Nearly two-fifths of dealers fear their business could go under without more government help over the rising cost of energy.
That’s according to the latest research from Close Brothers Motor Finance, whose poll of 77 dealers found that 38 per cent of them said their business will struggle to survive without enough government aid.
More than half – 56 per cent – believe rising energy costs have had a more significant impact on the motor industry than on other industries.
Meanwhile, almost three-quarters – 74 per cent – of car dealers feel the motor sector hasn’t received enough specialist support during the economic downturn
Thirty-two per cent say high energy costs will be the biggest challenge they face during the next year.
Lisa Watson, director of sales at Close Brothers Motor Finance, said: ‘For car dealers, the past few years have brought challenge after challenge – the pandemic, war in Ukraine, and Britain’s cost-of-living crisis.
‘In addition to this, there have been more industry-specific complications, such as the global chip supply issues.
‘Our research data highlights the genuine business concerns of car dealers about energy costs and their potential business impact.’
Close Brothers said there was a ray of hope, with the latest SMMT statistics showing 131,994 new cars being registered in January – 14.7 per cent more than in January 2022.
Watson added: ‘2023 has brought much more positive sentiment to the industry, so it’s important that that momentum is maintained and dealers are supported through business pressures like rising energy costs.’
Car Dealer Live – the future of the car dealer – exclusive conference features talks from leading car dealers, Google and Auto Trader among much more. Find out the full event details and book tickets.
