Car dealers have shown optimism in the face of adversity, with 89% of dealers confident in their business outlook for the next six months, despite a series of sobering industry statistics.
The new research from Close Brothers Motor Finance has revealed the various survival strategies deployed by car dealers in attempts to limit the effects of Covid-19 over the last few months.
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Seán Kemple, managing director at Close Brothers Motor Finance, commented: “Dealers have had to make big changes to survive during the pandemic and adjust to a new retail environment. This means furloughing staff, but also introducing new measures to ensure customers can still get their hands on their next car. Digital transformation has also been vital to maintain engagement with customers and be more resilient in an ever-changing retail world.”
In response to social distancing restrictions, two in three dealers introduced a delivery service or increased their publicity of an existing service. According to the findings, 50% also changed their stock sourcing strategy.
Half of all firms surveyed adapted their social media offering, and 43% committed to building the online presence of their dealership in order to attract more customers. Online platforms have enabled firms to ensure customer access from their own homes.
From a financial perspective, the pandemic has had a major impact on the industry. 43% of dealers were forced to amend their profit targets, while 22% had to take out finance or additional finance to stay afloat.
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By GlobalDataThe research revealed that 68% of dealers had to furlough staff, and 15% let staff go in the face of a stagnant economy. Kemple continued: “Despite the introductions of local restrictions, and now a national lockdown, dealers are feeling confident that their business will survive further hurdles. Dealers are making positive changes to complete sales in a totally different car-buying landscape and continuing to attract customers.
“However, it is crucial that the Government continues to provide support for those that will “find themselves set back financially. Dealers need to keep adapting and improving their stock and sales strategy to meet customers’ needs and keep afloat during further restrictions.”
