The top dealership worries of 2025

Rising staff costs are the factor most likely to negatively affect their business in 2025, four out of 10 (40%) dealers say in new research.

Starline’s January Used Car Tracker shows they are also worried about higher costs for stocking (38%), premises (38%), compliance (34%) and vehicle preparation (33%).

Paul Burgess, CEO at Startline Motor Finance, 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 that 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.”

Other issues mentioned in the research include falls in vehicle sales (34%), servicing income (21%), finance commission (19%), add-on sales (19%) and aftersales income (12%). Confusion over the Zero Emissions Vehicle (ZEV) Mandate is also expected to have an impact, mentioned by 14%.

Paul said: “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.

“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.”

The same question about cost worries was also included in January 2024’s Startline Used Car Tracker. Then, dealers also said that the cost of staffing costs was the main factor (47%) followed by premises (33%), stocking (30%), vehicle preparation (27%) and advertising (22%).

The Startline Used Car Tracker is compiled monthly for Startline Motor Finance by APD Global Research, well-known in the motor industry for their business intelligence reporting and customer experience programs. This time, 329 consumers and 58 dealers were questioned.

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