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Sellers nonetheless seeking to make investments regardless of rising prices


Motor sellers are nonetheless seeking to put money into their forecourts this yr regardless of financial uncertainty, rising prices and enterprise challenges, in accordance with Shut Brothers Motor Finance’s Forecourt Foresight analysis.

It discovered that of those that plan to put money into their enterprise this yr, greater than two-thirds (67%) are planning to spice up inventory whereas nearly a 3rd (29%) will put money into on-line and digital platforms and the identical quantity (29%) will improve showrooms.

The continued cost-of-living disaster (82%), lack of inventory availability (29%), and vitality costs (26%) are a number of the greatest challenges for sellers this yr.

But, regardless of these considerations, one-in-five (18%) nonetheless plan to rent extra employees, and one in eight (16%) will increase employees coaching and growth.

Regardless of the gradual shift in direction of different gasoline automobiles (AFVs), simply 4% of sellers are planning on putting in charging factors on their forecourts.

Simply 16% of sellers stated that they aren’t planning any investments of any variety this yr. For 1 / 4 (25%) of sellers it is because none of their enterprise plans require extra funding, whereas nearly one in 5 (19%) verify they’ve already lately invested of their enterprise.

The turbulent market mixed with financial challenges was additionally cited as causes for no funding. Two in 5 sellers (41%) verify there’s an excessive amount of financial uncertainty, whilemore than one in ten (13%) cite the time not being proper.

Lisa Watson, director of gross sales at Shut Brothers Motor Finance, commented: “Though the automotive market is buoyant and the most recent new registration figures have remained resilient, there’s an array of challenges impacting sellers up and down the nation – from the continued cost-of-living disaster and hovering vitality payments to difficulties acquiring inventory.

“However the excellent news is that sellers are nonetheless seeking to improve their enterprise with funding, which we will help them with by way of our inventory funding. And, lots of those that aren’t planning to take a position might have both completed so lately or their plans merely don’t require additional funding.

“As sellers look to the yr forward, the increase to their companies, in addition to knowledge pushed insights to make sure shopper demand is met, will play an more and more essential position in ensuring sellers see sustained gross sales and a lift to their backside line.”

The Forecourt Foresight analysis was performed by Shut Brothers Motor Finance, surveying 200 sellers within the UK in November 2023.

 

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