Customer retention is the biggest problem facing dealers over the next year.
That’s the conclusion of research carried out by Alphera Financial Services.
It found that 81 per cent of dealers regard customer retention as their biggest challenge to overcome.
Eighty per cent of dealers say the internet has impacted on customers and they way they buy their car.
Most dealers, 61 per cent, believe it’s easier to retain customers who paid on finance than those who paid in cash.
Customers are becoming more aware of the finance options open to them, hunting for the most competitive deal.
They are also taking control of how they want to buy their cars, which has been reflected in the uptake in Personal Contract Purchase (PCP).
A third, 37 per cent, of dealers think PCP will be the most important finance method in 12 months’ time while almost a quarter, 24 per cent, expect Hire Purchase (HP) to continue its success,” it said.
© Metropolis International Group Ltd 2010 – Thursday, 29 March 2012 – MotorTrader.Com