Dealers ‘overwhelmingly optimistic about next 12 to 18 months despite gloomy economic outlook’

Time 2 years ago

DEALERS are overwhelmingly optimistic about the used car sector in the next 12 to 18 months, new research for Startline Motor Finance indicates.

Despite a potentially gloomy economic outlook thanks to factors ranging from the prospect of a recession to continuing Brexit uncertainty, almost half of those quizzed (47.1 per cent) said they believed the market would see growth to some degree.

Meanwhile, nearly a third (29.1 per cent) saw the market as unchanging, while just over a fifth (22.8 per cent) predicted a limited decline. None of the respondents thought there would be a substantial drop.

Paul Burgess, pictured, chief executive at Startline, said: ‘One of the truisms of the motor industry is that even when times are difficult, people still need cars to live and to work – and even when new car sales suffer, used sales tend to be resilient.

‘To some extent, used cars are a counter-cyclical business, and there is every reason to believe that the industry will be very busy over the next couple of years, whether the many possible macro-economic difficulties materialise or not.

‘Dealers clearly share this view, but it is perhaps surprising the degree to which they view this as a moment when growth – even substantial growth – is possible. Really, they are overwhelmingly optimistic.’

The research by APD Global surveyed 57 dealer businesses, including franchise groups, independents, car supermarkets and online specialist brokers.

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Car Dealer has been covering the motor trade since 2008 as both a print and digital publication. In 2020 the title went fully digital and now provides daily motoring updates on this website for the car industry. A digital magazine is published once a month.

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