Pressure mounts in used cars, top franchises rated

 

Over the past few weeks we have a series of results from dealer groups showing how they have performed in the first half of the year.

The results have been positive in many cases. Pent-up demand and rising consumer confidence have been good for business.

But some have warned that the second half is going to be – is – more difficult as dealers battle with a shortage of new cars because of the semi-conductor supply constraints.

The situation varies from manufacturer to manufacturer and there is little certainty.

This is having a big impact on the used car market. So, in this issue we look at the issues of sourcing used cars and funding them.

In the September issue of Motor Trader we contacted dealers on the Motor Trader reader list and got their views on the current shortages of vehicles and what they are doing to try and source more stock.

We also canvassed their views on used car values. Will they take a hit after soaring for so long? Most dealers expect values to continue to rise for the foreseeable future.

We also look at funding and ask what finance houses could do to help dealers with their business.

Sales of EVs are growing fast and dealers are adapting their businesses in response.

We look at Norton Way and its Nissan dealership in Letchworth, which earlier this year took on an electric vehicle charging scheme to help reduce costs and improve its carbon footprint.

The programme allows vehicles to be charged overnight when the cost is lower while the electricity stored in the vehicles can be used to run the dealership during the day.

For this scheme, Norton Way partnered with SmartestEnergy, Grid Edge, Virta and Origami. On-site kit, which includes two Virta vehicle-to-grid chargers, a solar carport, and a rooftop solar system.

It was also time to look at the NFDA Dealer Attitude Survey to see which franchises are rated the best in the UK and those who have a lot of work to do to boost their ratings.

We look at the franchises that have improved the most since the last survey six months ago and those that have deteriorated the most.

Lexus emerged as the brand of choice for UK dealers in the summer 2021 issue of the survey. Lexus was just ahead of Toyota and Kia while Mercedes-Benz and Volvo also made it into the top five.

The brands that found the going toughest in the overall popularity rating were Hyundai, Abarth, Fiat, Mitsubishi and Vauxhall.