Used car sales could be white knight for dealerships
MAXIMISING used car sales could be crucial for West Midlands car dealers this year, according to accountancy firm Baker Tilly.
It suggests that with the West Midlands playing home to more than 1,000 motor dealers, the projected decline in new car sales is set to have a negative impact on their business and, in turn, the sector’s contribution to the regional economy.
Used car sales will therefore be a key strategy for such businesses, it suggests. Some 71% of motor retailers who responded to Baker Tilly’s most recent national sector survey reinforced this view, with expectations for used car sales over the coming year to be either ‘strong’ or ‘very strong’.
The Motor Retail Outlook survey, undertaken by Baker Tilly and AM, found that whilst dealers were more optimistic about the prospects for their own business than the overall sector, attitudes throughout the UK were universally negative towards their dealership’s sales, gross margins, operating profits and employment.
Consumer confidence, increased regulation and tax burdens, together with increasing direct costs, were also cited as perceived threats to profitability.
Graham Bushby, restructuring and recovery partner at Baker Tilly in Birmingham, who has more than 12 years’ experience working with regional motor dealers, said: “The regional motor retail sector presents a diverse picture encompassing a mix of small independently owned dealers alongside a number of larger groups.
“It is expected that the latter will find it easier to prosper, with the ability to capitalise on the benefits that critical mass can offer, but 2012 will provide neither with an easy ride.”
Baker Tilly is one of the sponsors of TheBusinessDesk.com’s inaugural Midlands Business Masters awards.
Nominations are now open for the awards, which as well as rewarding company success, will highlight all that is good about business in the Midlands, including the outstanding personalities who make the region’s economy thrive.
An independent panel of respected business experts will judge the awards which will celebrate and honour the most successful businesses and entrepreneurs in the region.
The six awards categories are:
West Midlands Newcomer – Best new business initiative in the region
West Midlands Manufacturer – Celebrating the region’s top manufacturing firms
West Midlands Pride – Most meaningful philanthropic initiative by a business, organisation or leader
West Midlands Innovator – Most creative or original business thinking
West Midlands Ambassador – Greatest contribution to business in the West Midlands
West Midlands Exporter – Recognising overseas trade success
If you would like to submit a nomination please click here.
The shortlist will be decided by the judging panel and announced on the website. Readers will be invited to cast the final vote for the winners.
Tickets for the Midlands Business Masters, which will be held from noon to 3.30pm on May 10 at The Town Hall, Birmingham, are available for £125 per ticket plus VAT. To buy tickets please click here.
