New reality, old challenges for Motor Retail?
Used car values are rocketing as demand has increased and despite the ongoing supply shortages with new cars, many operators have found themselves reporting record results following a period of decline in new car registrations. Motor dealerships have, on the whole, weathered the COVID-19 pandemic well.
Before the COVID-19 pandemic, the motor retail sector was being affected by economic uncertainty, technological disruption, regulation changes, the challenges of recruiting and retaining quality staff and the ongoing cost of complying with dealer standards. These significant challenges have recently been overshadowed by immediate concerns during the pandemic but they haven’t gone away. The sector still faces short-term uncertainty and longer-term challenges.
The bounce back of the UK economy following the easing of social distancing and lockdowns is positive but may be short lived. Government support measures ending in September 2021 will bring a substantial dose of reality to many motor retail businesses that are currently reliant on them for survival. The broader impact on employment, consumer confidence and disposable income also remains unclear.
Electric vehicles are driving new car sales. However, registrations are skewed towards hybrid models suggesting that consumers do not yet have full confidence in the charging infrastructure.
The fundamental shift by consumers towards online interactions and sales has led many motor groups to actively consider what the likely impact and opportunities may be of transitioning to an agency model with manufacturers.
Our knowledge and experience working with motor dealers
Could you benefit from the advice and insight of an adviser who has a real depth of knowledge of the car industry and motor dealerships. Whether it is tackling cashflow concerns, refinancing banking facilities or ensuring systems, controls and policies comply with FCA requirements and guidelines, you could be expertly supported and advised as you rethink your motor retail business and make the right decisions for the future.
Wherever you operate, there is a BDO partner or specialist with the knowledge and experience to make a real difference to your business. Our Motor Retail team includes senior experts across all specialisms such as tax audit and a full range of advisory services. Our service is delivered from our offices across the UK, led by a Centre of Excellence based in Southampton that ensures training and support to other BDO offices.
Our clients already include franchised dealerships and used-car operations and range from single to multi-franchised groups. We will work with you to address your unique needs and opportunities of your motor retail business. We will work hard to deliver improved results using the knowledge and skills of our people.
Our services for motor retail businesses
We can provide you with a full range of services including:
- Statutory audit and financial statement preparation
- Corporation tax compliance and advice
- Capital allowance reviews
- Risk advisory and internal control services
- VAT and employment tax advice
- Corporate finance advice and services including due diligence and M&A
Motor Retail knowledge-sharing and reports
Our experts regularly speak at industry webinars and events. We also organise roundtables on best practice, regulatory changes as well as the challenges and opportunities facing the motor retail sector. Our relationships with key industry stakeholders and our audits of the AM Awards all contribute to our ability to keep you one step ahead of the market.
We will pinpoint where you can enhance efficiency and protect profit and help ready you to be a dealership for the future, whatever that may bring.
The BDO Motor 150 Report, NADA Update and the Motor Salary Survey provide insight into what your peers and competitors in motor retail are thinking as well as guidance on how you can best prepare for the challenges ahead.