THE next few months are certainly going to be challenging, warns the RMIF.
So what can dealers do to help them through it? Diversify, says Ray Holloway, RMIF director of independent membership.
‘With interest rates likely to remain at the current high level for the foreseeable future, consumers may be cautious about making major cash outlays, such as a buying a vehicle, or undertaking major work on an existing one.’
‘Where possible, many are likely to wait and see how the situation plays out through the summer. In this kind of situation, diversification could be a good way to help continue the growth of the business.’
His advice includes add-ons to key services. Seasonal checks and indulgent valets can be offered for a nominal fee, serving as additional income generators.
Nevertheless, banks tightening their belts will undoubtedly lead to reduced cashflow in the short term. But businesses can still help themselves, by ensuring they make best possible use of all financial amenities available to them.
‘Businesses must make sure that they are getting the best rates from banks, and that they use all measures available to them’.
He added: ‘Using RMIF membership benefits, such as the member helpline, deals on banking and card processing – and a number of other offers on equipment and services – will be crucial at this time.’