A failure to prospect thoroughly – or at all- is at the heart of problems suffered by failing car dealers in the last year, according to research by Pinewood Computer Solutions.

A survey of 500 dealers found that 63% were not prospecting enough or not at all and of those around 90% were experiencing business conditions “significantly worse than last year”.

Another common problem highlighted by Pinewood is that some dealers have a tendency to stop prospecting when their sales departments are busy.

“This tends to lead to a stop-start business cycle. Prospecting is a core activity and should be carried out as part of a dealership's day-to-day business,” said Neville Briggs, Pinewood's managing director.

Dealers who made the most use of the prospecting facility were those who felt the most confident about the preceding 12 months and their profitability.

Pinewood carried out the survey as part of ongoing work to ensure the effectiveness of its CARS dealer management system.