Financial stability could benefit dealers’ reputation

Used car dealers could find themselves under increasing pressure in the coming months as the credit crunch highlights the importance of a good reputation.

According to a new report from Experian, companies are becoming increasingly selective about who they deal with in times of financial uncertainty.

As a result, dealers need to remain financially sound to ensure they maintain a good reputation.

Those who appear to be ‘out of shape’ with their finances may not attract business from potential suppliers or customers, Experian claimed.

Kirk Fletcher, managing director of the firm’s automotive division, said companies were monitoring dealers to ensure their profiles were reliable.

“By not keeping an eye on their own business risk profiles, they could be giving other businesses a reason to treat them with caution,” he explained.

While dealers will be keeping an eye on their financial reputations in the coming months, new plans could also force them to provide more information about the carbon dioxide emissions released from their cars.

The government has ruled that all new cars must be sold with CO2 emissions information and this could be extended to the used car market.

Daniel Burgess of HPI believes the guidelines would help consumers and dealers during the sales process.

As consumers become increasingly aware of their carbon footprint, it may benefit dealers if they can provide a buyer with the necessary information to make a purchase decision.

Mr Burgess claimed that if the rule was applied to the used car market, it could help buyers to “reduce their carbon foot print, keep running costs down and stay on the road to a greener future”.

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