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Others think that Dealers are more ‘confident’ on used car margins…..

Home / News / Others think that Dealers are more ‘confident’ on used car margins…..

Dealers are more confident about the prospects for 2012 but it will still be a challenging year according to findings from a Manheim survey sent to over 5,000 franchised and independent dealers.
Overall, 78 per cent of respondents believe that used car sales will either improve or stay at similar levels to 2011 and 22 per cent think they will worsen.
A majority of respondents, 65 per cent, expect to experience either an improvement in or the same levels of margins but 35 per cent expect to see a decrease.
2011 was a difficult year with 52 per cent of respondents seeing a decrease in margins and 43 per cent a fall in used car sales.
But it was not all bad news as 15 per cent of respondents experienced an improvement in margins and 27 per cent saw an increase in used car sales.
Of the respondents selling new cars 23 per cent experienced an increase in sales during 2011 but 51 per cent saw a fall in sales
Prospects for 2012 seem slightly better with 32 per cent expecting an increase in new car sales and 36 per cent a decrease.
Craig Mailey, marketing director, Manheim said: “The fact that many dealers seem to be more confident about the prospects for 2012, even though challenges remain, is encouraging.
“The economic uncertainty will continue to put pressure on dealers’ margins while an increase in consumer confidence will be the key to any improvement in both used and new car sales.”