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Pressure mounts for dealers in new car market

Check out the October issue of Motor Trader. This month we look in detail at the new car market and the pressure dealers and brands were under in the September plate-change. Some brands have been criticised by dealers in recent months for chasing big volumes without providing adequate incentives.

With new cars under pressure, dealers have been putting a lot of efforts into used cars. Last year was a great year for Arnold Clark and its massive used car business.

The group saw used car sales volumes rise by 9.5% to 238,977 units, while new car sales – hit by WLTP – fell -2.6% to 68,344 units.

The group has invested heavily in its Motorstore business, opening four centres in 2017 and one in 2018. And in February this year it opened a Motorstore in Bolton with plans two more.

We also take a close look at Pendragon as it announces losses for H1. It is restructuring its used car business with the closure of Car Store supermarkets, pulling out of the US and selling or closing selected Jaguar Land Rover businesses.

We also look at dealer developments behind the scenes when it comes to the roll out of EVs. This year may be remembered as the year electric vehicles entered the mainstream. EVs and AFVs have consistently seen the biggest percentage increases in registrations through H1 of 2019 and there were an overwhelming number of EVs and AFVs on display at the Frankfurt Motor Show.

The roll out of EVs presents an array of challenges and questions for dealers, revolving around training for salespeople and technicians, health and safety, additional costs and dealership standards. We look at what dealers, trade and training bodies and carmakers are doing in this area.

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