Successfully handling challenges has always been a core skill of any motor dealership. However, today there are a multitude of new, significant challenges that motor retailers must tackle.

Many of these are outside their control, such as the ongoing discretionary commission arrangements case,  the who will and who won’t switch to agency debate or efforts made by manufacturers to rationalise their retail networks. Combined with financial pressures on consumers and the changes to National Insurance  and Inheritance Tax announced in the Autumn 24 Budget, many motor retailers are feeling that they are working ever harder for less.

AI is beginning to assist in automotive retail, although 'people still prefer to buy from people'. Retailers must navigate the mismatch in supply and demand for electric vehicles, compounded by the ZEV Mandate and VETS, while maintaining strong OEM partnerships. Lastly, they must anticipate changes in consumer behaviour and the impact of decreasing loyalty to specific car brands.

Tackling day-to-day challenges may be bread-and-butter to motor retailers, but this skillset should also be used to look further ahead. For those retailers looking to do more than simply survive the challenges, developing a longer-term strategic approach will not only ensure survival, but also boost profitability and position them for the next stage in their development be that organic growth, acquisitive expansion, succession or a sale.

At BDO, we work closely with the motor retail sector and with businesses of all sizes - from single-site dealerships to large, listed groups. Our insights are also informed by strong relationships with key industry stakeholders, active participation in webinars and events, and involvement in the AM Awards. To find out more about our services and the latest Motor Retail insights, click here.

Key trends and analysis

We work closely with all elements of the motor retail sector. Our experts regularly speak at industry webinars and events. As leading auditors and advisers in the UK, we work with businesses ranging from single site car dealerships to large, privately-owned and listed groups. We regularly conduct research and publish reports demonstrating that we understand and can help the companies we work with respond to, the trends and developments in the motor retail sector. Our relationships with key industry stakeholders and our completion of the AM100 table all contribute to our knowledge and expertise. Ultimately, all this allows us to help you enhance efficiency and protect profit.