Dealerships cite higher wages in 2025 as top concern
Nearly half of UK dealerships have said that higher wages in 2025 are their main worry, according to research from Startline Motor Finance.
It found that 40% of respondents believe that increasing salaries will be their biggest challenge in the next 12 months.
Its January Used Car Tracker asked dealers what they considered to be their main issues going forward, with 38% also identifying higher costs associated with stock and premises, 34% warning of compliance costs and 33% saying vehicle preparation expenses would also be a strain on their business.
Paul Burgess, CEO, said: “It seems dealers are concerned about a whole range of costs in 2025, but staffing is the biggest. While pressure for pay rises is probably lessening, the increase in employer National Insurance announced in the Budget is no doubt a worry for many. Seeing concerns over stocking, premises, compliance, and preparation costs is perhaps not a surprise, but it is noteworthy that dealers believe they will continue to face ongoing rises in these areas at a time when inflation has fallen back to much lower levels than we have seen in recent years.”
Falling vehicle sales
Meanwhile, 34% suggested that declines in vehicle sales (34%) was a major concern, with other issues including reduced servicing income (21%), finance commission (19%), add-on sales (19%), and aftersales income (12%).
Burgess added:
“It’s interesting that vehicle sales are the top concern when it comes to reduced income and perhaps suggests there is a degree of worry over the economy in general in 2025. Some dealers clearly think the general used car market could take a turn for the worse.”
He continued: “The ZEV Mandate is also on the minds of dealers, and we are hopeful that the current consultation will provide effective and practical help when it comes to both new and used electric car sales. The government says it is in ‘listening mode,’ so let’s hope the motor industry’s concerns are being heard.”
