ALMOST two thirds of dealers are on track or are performing above their half year forecasts according to the latest NextGear Capital sentiment survey.
In a further sign of dealer confidence, a third of those surveyed said they had increased their used car stock volumes in the first six months of the year.
Another one in ten have reported investing in additional funding to enable business growth, while almost a quarter said they had taken on new staff.
Only one in five said they had not invested in their business in the last six months.
It reinforces dealer optimism voiced at the start of the year, when over half of those responding to NextGear Capital’s January sentiment survey said they were looking forward to a positive 2019, which included plans for business investment.
Pam Halliday, NextGear Capital’s Sales and Marketing Director, said: “It’s positive to see the majority of dealers say they are either on or ahead of plan. Trading conditions are challenging right now so we could have easily expected a much lower number.
“The number of dealers investing in their used car business is also good news and I’m particularly encouraged by the fact the volume of those reporting that they’ve obtained funding to enable growth is greater than anticipated.
“This is indicative of ambition and suggests we’ll see dealers push themselves over the second half of the year to realise their ambitions.
“Having enough stock to meet demand and replace sold vehicles swiftly is key to running a competitive dealership and achieving sustainable margins. Few dealers can sensibly achieve this from their own reserves so securing access to reliable and flexible funding is vital.”
Leave A Comment