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UK dealers have reported strong footfall through July, according to a new survey from automotive data experts cap hpi.
The study shows that 63% of those surveyed reported an increase or the same physical footfall from June. While 38% reported an increase in online activity. New car registrations for the month were down 0.1% year on year.
A survey immediately after the June EU referendum reported 49% of dealers predicting a negative impact as a result of fears around Brexit, only 10% felt the referendum result would have a positive effect on new car sales, 16% anticipated no change and 25% didn’t know.
Retail demand was also positive with 41% of dealers reporting an improvement over last month and 24% saying it stayed the same.
Commenting on the results, Philip Nothard, consumer and retail specialist at cap hpi said: “A strong first half of the year has positioned dealers well for a good 2016. Any jitters around the impact of the referendum seem to have been put aside through a buoyant July.”
Only 19% of dealers reported an improvement of retained margins over last month, while 47% said margins were squeezed.
As expected with seasonal trends, 39% of dealers said that stock availability had improved, and a 47% said it hadn’t changed in the last month.
July’s survey results indicate a similar performance of finance penetration, with 54% of those responding indicating little or no change, and 25% citing an increase.