Agency model worries dealers

Market Briefing represents the views of the industry on issues affecting the leasing broker market. If you have a view you would like to express, please email the editor: ralph.morton@brokernews.co.uk. Market Briefing is supported by FleetProcure, the online vehicle purchasing system used by leasing brokers and dealers.

27% of dealers surveyed said agency was worrying
51% concerned by reduced availability of car finance
69% said stock availability remained an unresolved issue

THE effect of agency on declining Mercedes-Benz car sales is well documented in the Broker News + market reports.

But it seems that the agency model and availability of motor finance are emerging as growing worries for used car dealers, according to the latest Startline Used Car Tracker report (August), complied by APD.

When dealers were asked about their biggest future challenges, the agency model was mentioned by 27% of respondents, the highest monthly figure recorded since this factor was added to the research in January, while the availability of finance was mentioned by 51%, its peak for this year.

The growing worry over the agency model is interesting because, at first glance, it doesn’t directly affect used car dealers. However, there is perhaps a growing level of concern that it could impact on already tight used car supply, with manufacturers using their new agreements to attempt to control vehicles through their second and third lives.

Paul Burgess, CEO at Startline Motor Finance Tweet

Paul added that the cost of living crisis was also impacting motor finance availability, with lender panels tightening criteria on personal finances.

Changeover to EVs also a concern

As the market starts to move to EVs, 61% of used dealers said this was making them anxious. However, stock availability remains the biggest overall worry at 67%, although was as high as 89% as recently as May.

Paul added: “While dealers are not worried about stock availabilty to the same extent seen a few months ago, it is clearly still the foremost issue occupying them on a day to day basis. Supply of used vehicles is a problem that is not going away anytime soon, even if there are signs that the situation is easing.”