Dealers are confident about new and used car sales performance in Q2, but expect more pressure on aftersales, according to new research.
The latest Dealer Confidence Barometer from JudgeService, based on responses from more than 2,000 dealers, shows rising optimism among independents on used car sales.
The proportion of independent dealers feeling positive about Q2 used car sales increased to 44%, up from 19% at the start of the year. Neutral sentiment fell to 31% from 52%, while those feeling negative dropped to 25% from 29%.
Among franchised dealers, confidence in used car sales remained steady at 50%. Neutral responses fell to 28% from 35%, but those feeling negative rose to 22% from 15%.
Franchised dealers’ confidence in new car sales also remained stable, with 39% feeling positive, 33% neutral and 28% negative, broadly in line with Q1.
Political headwinds not expected to damage demand
Neil Addley, managing director of JudgeService, said the findings point to resilience in demand.
He said: “The results of our latest Dealer Barometer are encouraging with dealers showing high degrees of optimism for how new and used car sales will perform over the course of Q2.
“This suggests dealers do not expect political and economic headwinds to have a damaging impact on buyer demand.”
However, confidence in aftersales is weaker and more mixed.
Among franchised dealers, just 22% said they were positive about Q2 aftersales performance, down from 44% in Q1.
Neutral sentiment rose to 61% from 40%, while 17% remained negative.
Independent dealers were more positive overall, with 38% expressing confidence, up from 33%. None reported a negative outlook, although neutral responses increased to 63% from 48%.
Addley said workshop activity may require more active management.
He added: “The outlook for aftersales in Q2 is more uncertain than in sales.
“While the majority of customers now rely on their cars to tell them when to book their cars in for work, good old fashioned service and MOT follow-ups will help keep workshops full.”