Nearly half of car dealers (44%) expect the amount of paperwork they handle to increase over the next three years, according to a survey by information management company EDM Group.
89% of the 51 car dealers who were interviewed cited increased regulation as the main reason behind the anticipated rise of paperwork.
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When asked about their current activities, 57% of respondents said that over half of their work was paper-based, while one in five (20%) said that paper-based work as a share of their total activity exceeded 75%.
Matt Collinge, associate director of automotive at EDM Group, said: "The impact of more paperwork not only increases the chances of car dealers being exposed to fraud, it can also have a huge impact on customer service levels. Some 59% of respondents to our survey say they expect service levels to fall because of this – some 15% believe that the increased focus on paper will have a ‘very negative’ impact on service levels.
"When you consider the fact that over four-fifths (86%) of people who experienced poor customer service from the last car dealer they dealt with would not go back to them, and that 34% of people claim to avoid companies in the sector because they have a poor reputation, the impact of this on sales can be devastating.
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