Motor Dealer Report 2016

In conjunction with our UK accountancy association, MHA, we are delighted to present our Motor Dealer Report 2016.

Prior to the recent Brexit vote there was a considerable amount of positive news and optimism in the sector, reflecting the level of sales volumes and growth in the last few years and also the considerable strategic activity which has been taking place. A good proportion of dealer groups are continuing to invest in the sector through developing existing sites and/or the acquisition of more franchises, sites or other dealers.

Report highlights:

  • 44% of respondents reported profitability growth in 2016, with 24% reporting static profitability
  • 64% of respondents are looking to grow their business within the next 12 months
  • 52% of respondents reported that PCP contributes to over 70% of new car purchases
  • Over half of motor dealers, 53%, believe that new car sales targets are achievable
  • 46% of dealers report a decline in margins, of those, 74% expect the decline to continue
  • Payrises, staff recruitment and Compliance FCA are reported as the top three operations costs to increase over the next 12 months
  • 66% of respondents believe that Alternative Fuel Vehicles will gain significant market share within the next 10 years, 24% within the next 5 years

“The report provides a snapshot of current confidence levels and the results are positive, although there are some concerns around the decline in used car margins and there are challenges ahead with rising operational costs. Thank you to all those who took part in the survey, please contact us to discuss any aspect of the report.”

Ian Cameron, Head of Motor Retail, Henderson Loggie

Click here to download the Motor Dealer Report 2016