Some 73% of independent car dealers surveyed
recently by vehicle information provider HPI say a lack of access
to motor finance is damaging their ability to sell cars.

As part of the same survey, 43% of those
polled expect their profits to be down in the first quarter of
2012, although 17% expect profits to rise.

Go deeper with GlobalData

Data Insights

The gold standard of business intelligence.

Find out more

Nearly two-thirds of dealers surveyed told HPI
their business was currently profitable and a quarter reported a
year-on-year increase in profit.

The survey comes as
the latest figures from the Society of Motor Manufacturer and
Traders show a decline in new car registrations, though with a
slight rise in the proportion of new cars sold to consumer rather
than fleet customers.

Percentage spent

The used car market, in particular, appears to
be feeling the squeeze according to the HPI survey, with 65% of
dealers reporting a drop in used car activity and 38% a drop in
used car retail prices.

How well do you really know your competitors?

Access the most comprehensive Company Profiles on the market, powered by GlobalData. Save hours of research. Gain competitive edge.

Company Profile – free sample

Thank you!

Your download email will arrive shortly

Not ready to buy yet? Download a free sample

We are confident about the unique quality of our Company Profiles. However, we want you to make the most beneficial decision for your business, so we offer a free sample that you can download by submitting the below form

By GlobalData
Visit our Privacy Policy for more information about our services, how we may use, process and share your personal data, including information of your rights in respect of your personal data and how you can unsubscribe from future marketing communications. Our services are intended for corporate subscribers and you warrant that the email address submitted is your corporate email address.


Dealer finance expanded in new and used cars in 2011, totalling
over three-quarters of a million retail finance deals for
second-hand vehicles. Considering
a market of nearly seven million units sold in the year, this
means 10.77% of all used cars sold across the year were on finance
arranged by a dealer in what HPI are calling a “weakening market
for independent dealers”.

Any loss may appear particularly acute for
dealers which, at the end of 2011, confirmed to
Experian and
Manheim Remarketing in two separate surveys that the used
market would be the most important part of their business in
2012.

Although recent figures from British Car
Auctions demonstrated
a resurgence of used car values, the market has not yet
recovered to December’s level, around when the Experian and Manheim
surveys were conducted.

richard.brown@vrlfinancialnews.com