Sellers brace for cost-of-living impression on shopper confidence

The looming cost-of-living disaster has emerged as probably the most vital hurdle that sellers should grapple with subsequent 12 months, in accordance with Shut Brothers Motor Finance.

Its newest Forecourt Foresight analysis suggests strain on shopper wallets will proceed to have a major impression on affordability in 2024.

The survey of 200 motor sellers revealed that 82% of sellers anticipate the cost-of-living disaster to be their most vital problem within the coming 12 months and marks a considerable improve from 70% recorded within the survey carried out in June.

Shopper confidence additionally takes a success with 40% of sellers estimating that consumers will turn into extra hesitant to make substantial purchases. This displays a 5% improve in comparison with the previous survey and can probably play a major function in sellers’ strategic concerns.

The analysis additionally highlighted a shift within the issues with inventory availability – as soon as a main concern for 54% of sellers within the latter half of 2023 – now decreased to 29% for 2024. Equally, fears over rising vitality prices has dwindled, with solely 26% of sellers expressing concern, in comparison with 42% in 2023.

Wanting forward, the survey recognized further challenges that will form the trade in 2024:

  • 15% – elevated competitors from on-line automotive retailers
  • 12% – authorities and trade regulation
  • 7% – regulatory adjustments
  • 7% – employees recruitment and retention

Lisa Watson, director of gross sales at Shut Brothers Motor Finance, emphasised the continued impression of the cost-of-living disaster, stating: “Regardless of inflation showing to be on its method down, it’s clear that the cost-of-living disaster is just not exhibiting any indicators of easing in 2024.”

Watson additional highlighted the function of data-driven insights in serving to sellers adapt to altering shopper developments and navigate the challenges that lie forward.

She mentioned mentioned buyer affordability can be casting doubt on the flexibility to satisfy the federal government’s revised 2035 ban on new petrol and diesel automobiles with the shortage of incentives in November’s Autumn Assertion additional compounding the problem, doubtlessly resulting in an increase in reluctance amongst consumers contemplating various gas automobiles (AFV).


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