Nearly all used car dealers believe aftersales are an increasingly important part of their business strategies, according to the annual Manheim Dealer Confidence Barometer survey.
Of the 5,000-plus independent and franchised dealers polled, 97% of respondents believed improving aftersales service absorption was a key part of business profitability, with 71% believing aftersales to be a very important factor for profitability.
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Nearly a third, 31%, said aftersales had been more profitable than expected in 2012; 40% said aftersales profitability was as expected.
On the up
Overall, dealers answering the survey appeared increasingly positive with 83% expecting used car sales in 2013 to improve on, or remain at, 2012 levels; up on the total of those who expected 2012 used car sales to be better or equal to 2011.
Of those surveyed, 43% saw a drop in used sales in 2012, compared to 52% who saw a drop in 2011.
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By GlobalData14% of respondents believe economic conditions in the UK will worsen, compared with 22% a year ago.
On profit margin, those expecting an improvement or a decrease split 65% to 35%; 22% saw better-than-expected margins in 2012 trading, compared to 15% in 2011.
The majority (59%) expected wholesale prices to remain the same, 25% expected a rise and 16% foresaw a drop.
Sourcing stock was cited as respondents’ top challenge for 2013, the same as 2012, followed by falling margins, consumer confidence, rising costs and cash flow.
richard.brown@timetric.com
