Dealers gear up for business, hope for better times ahead

Last year was a particularly tough one for dealers as they came to terms with the impact of three lockdowns with showrooms temporarily closed for business.

The pandemic threw into sharp relief the relationships dealers have with suppliers, and carmakers and showed just how far the government was prepared to go in providing relief to companies facing massive cashflow problems.

In the MT Survey we asked dealers how the pandemic had impacted their business, what they had learnt from it and what their plans are now as we emerge tentatively from the pandemic in terms of recruitment and profitability.

The majority of those polled said the Covid pandemic had negatively affected their business while 20% believed it had been positive for them.

This might appear counter intuitive but some of the profitability figures from dealer groups for 2020 show that some dealers adapted fast after the first lockdown, made significant cuts, took advantage of government assistance, and adopted new digital approaches to doing business with showrooms shut.

The government loans were welcome by respondents with 71% saying they were valuable during the pandemic. The VAT deferral was even more popular with 83% of respondents saying the scheme was valuable. But most popular of all was the deferral of business rates which was voted valuable or extremely valuable by 94% of respondents.

Elsewhere in the issue in Dealer Insight we look at Essex-based Quest, which went through an experience that hundreds of dealers have gone through over the past year, having to look afresh at its business model and restructure to emerge leaner and more efficient.

Dealers have worked hard over the past 12 months to keep in business and now we can hope for better trading environment ahead. Now is the time to celebrate the great things that are being done at the sharp end.

The Motor Industry Awards are now open for entries. For over 30 years these awards have been seen industry wide as a benchmark for excellence for UK car retailers and suppliers. Entries are now open with 25 retail categories and six supplier categories available to enter.

And for non-franchised independent used car dealers, we have the Motor Trader Independent Dealer Awards, which celebrate excellence in used car retailing, in the UK independent used car sector. Entries are now open in 14 Retail Categories and 5 Supplier Categories. Good luck.