United Kingdom
Industry Issues
New car registrations continue to fall, automotive manufacturers world-wide are under going major structural changes in order to improve operational efficiency and the recession is tightening its grip. In addition to ongoing concerns over profit levels and consolidation in the market, current conditions have brought relationships with banks and other financiers come to the fore, and motor dealers may find themselves contending with new issues:
- increased monitoring of overdraft and loan facilities taking up valuable management time.
- switching of the basis of interest rate charging from base rates to LIBOR, increasing costs.
- banks requesting increased interest margins to reflect market conditions.
- restricted ability to borrow for expansion or additional working capital.
- greater focus on existing covenants with manufacturers and if dealers are found in breach, possible discussions about renegotiating interest rates or reducing facilities.
- concern about falling numbers of finance providers, and subsequent reduction in the availability and competitive pricing of financial products.
- customers are also finding it more difficult to arrange finance for new or used vehicle purchases, which will have an impact on numbers of units sold.
How we help
With expertise over 20 years, we have developed specific products and servicesfor motor dealerships as well as having experts who can advise on all aspects of running a dealership. We understand not just the issues affecting the sector but the sector itself, meaning we have a team of people who can devise plans to maximise all opportunities, whatever the economic climate, always ensuring that our advice is practical, value adding and cost efficient.