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Decline in dealership numbers to continue

The latest Trend Tracker report has highlighted a significant reduction in the number of used car retailing sites in the UK over the last decade.

Its market analysis, The Future of the Used Car Market in Great Britain 2012 to 2017, asserts that there were 11,610 sites in 2001, comprising franchised dealers, independent used car sites and used car supermarkets.

In 2011, there were 25% fewer sites, with franchised dealers and independent used car retailers experiencing similar declines in numbers.

Further still, the report forecasts that the number of sites will continue to decline, with 11% predicted to close between 2012
and 2017.

Robert Macnab, Trend Tracker’s lead analyst, said: “In a new car market that will continue to be weak for a while, some franchised dealers will face a shortage of working cap-ital as their showroom costs cannot be cut in line with already marginal profitability in new car sales.

“There is likely to be some decline in single-brand sites as manufacturers sanction multi-franchise dealerships to preserve local representation.

“Dealer groups can be expected to close some of their least profitable sites, especially in the regions which will experience the slowest recovery from recession - Wales, the north-east and the West Midlands.”

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Comments

  • Irishboy4 - 30/05/2012 06:07

    The growth of cyber sales and the death of car dealers.

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