Car dealers desperate for Autumn Budget support
As the Autumn budget approaches, car dealers are calling for government action to help ease mounting business pressures, according to research from Close Brothers Motor Finance.
Nearly two thirds (65%) are calling for tax cuts, followed closely by VAT reductions (63%). 44% of dealers would like to see lower business rates, and two in five (41%) are looking for support with rising energy and operating costs.
Without targeted relief, many dealerships could struggle to invest in future technologies and stock options such as electric vehicles (EVs) or maintain profitability amid fluctuating consumer demand.
Dealers are already hesitant about facilitating EV stock. Nearly six in ten dealers (58%) say they don’t plan to install EV charging points, and 59% have no plans to update their workshops to service electric models. A striking 71% of dealers also have no intention of setting up a dedicated EV sales area.
John Cassidy, managing director – sales, at Close Brothers Motor Finance, commented: “Ongoing uncertainty continues to cause headaches for car dealers, who are hoping the Autumn Budget offers some form of relief in the face of mounting challenges.
“Dealers are feeling the pressure from all angles, as rising energy bills, shifting consumer demand and economic headwinds contribute to the hurdles dealers are having to navigate. As the Government moves ahead with its plans to ban new petrol and diesel vehicles, a lack of incentives for dealers to stock EVs could pose a barrier to widespread adoption. All eyes will be on the chancellor as dealers look for a glimmer of hope.”