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New EU laws impacts on dealers

New Block Exemption changes set to come into effect in October are already changing the market for dealer management systems, according to research from Pinewood.

The "location clause" in the EU's Block Exemption ruling means dealers will soon be able to sell and service cars outside their territory and right across the country.

Neville Briggs, managing director at Pinewood, says: "Clearly, dealer groups are looking at the opportunities that the location clause represents. For some, it will mean a move into an acquisitive mode, where they will look to buy sites across the country. Others could start new dealerships from scratch.

"However, what it means to nearly all of them is that they will potentially be operating from more sites than previously as they move into new territories, and this is changing the specification they need their DMS to meet."

Research by Pinewood shows that the ability to access DMS systems at many different locations across large geographical areas in real time has rapidly moved up the list of buying requirements listed by dealer groups.

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