The looming cost-of-living disaster has emerged as probably the most important hurdle that sellers should grapple with subsequent yr, in response to Shut Brothers Motor Finance.

Its newest Forecourt Foresight analysis suggests stress on shopper wallets will proceed to have a major influence on affordability in 2024.

The survey of 200 motor sellers revealed that 82% of sellers anticipate the cost-of-living disaster to be their most vital problem within the coming yr and marks a considerable enhance from 70% recorded within the survey performed in June.

Shopper confidence additionally takes a success with 40% of sellers estimating that consumers will grow to be extra hesitant to make substantial purchases. This displays a 5% enhance in comparison with the previous survey and can seemingly play a major function in sellers’ strategic issues.

The analysis additionally highlighted a shift within the considerations with inventory availability – as soon as a main concern for 54% of sellers within the latter half of 2023 – now decreased to 29% for 2024. Equally, fears over rising power prices has dwindled, with solely 26% of sellers expressing concern, in comparison with 42% in 2023.

Trying forward, the survey recognized extra challenges which will form the business in 2024:

• 15% – elevated competitors from on-line automotive retailers
• 12% – authorities and business regulation
• 7% – regulatory adjustments
• 7% – employees recruitment and retention

Lisa Watson, director of gross sales at Shut Brothers Motor Finance, emphasised the continued influence of the cost-of-living disaster, stating: “Regardless of inflation showing to be on its method down, it’s clear that the cost-of-living disaster shouldn’t be exhibiting any indicators of easing in 2024.”

Watson additional highlighted the function of data-driven insights in serving to sellers adapt to altering shopper traits and navigate the challenges that lie forward.

She mentioned buyer affordability can be casting doubt on the flexibility to fulfill the federal government’s revised 2035 ban on new petrol and diesel automobiles with the dearth of incentives in November’s Autumn Assertion additional compounding the problem, probably resulting in an increase in reluctance amongst consumers contemplating different gas automobiles (AFV).