Rising employees prices and car gross sales woes to impression sellers in 2025, analysis finds

Analysis from Startline Motor Finance reveals that rising employees prices are the best concern for UK automobile sellers in 2025, with 40% of sellers figuring out this because the issue almost certainly to negatively have an effect on their enterprise.

The findings come from Startline’s January Used Automotive Tracker, which highlights a spread of challenges sellers are going through heading into the brand new 12 months.

Sellers expressed extra considerations about rising prices throughout numerous areas, together with stocking (38%), premises (38%), compliance (34%), and car preparation (33%).

Paul Burgess, CEO of Startline Motor Finance, commenting on the findings, saying: “It appears sellers are involved about a complete vary of prices in 2025, however staffing is the largest. Whereas strain for pay rises might be lessening, the rise in employer Nationwide Insurance coverage introduced within the Finances is little question a fear for a lot of.”

He added: “Seeing considerations over stocking, premises, compliance, and preparation prices is probably not a shock, however it’s noteworthy that sellers consider they’ll proceed to face ongoing rises in these areas at a time when inflation has fallen again to a lot decrease ranges than we’ve got seen in recent times.”

The analysis additionally sheds mild on different challenges sellers are anticipating in 2025. A major quantity cited declines in car gross sales (34%) as a serious concern, whereas 21% of sellers are anxious about diminished servicing revenue. Different points comparable to finance fee (19%), add-on gross sales (19%), and aftersales revenue (12%) have been additionally highlighted.

“It is fascinating that car gross sales are the highest concern relating to diminished revenue and maybe suggests there’s a diploma of fear over the economic system basically in 2025. Some sellers clearly suppose the overall used automobile market might take a flip for the more serious,” Burgess defined.

Moreover, the looming Zero Emission Car (ZEV) Mandate is predicted to pose challenges for sellers, with 14% of respondents expressing concern concerning the mandate’s impression. The ZEV Mandate requires an rising variety of EV gross sales, which might have an effect on the gross sales of conventional automobiles.

Burgess stated: “The ZEV Mandate can be on the minds of sellers, and we’re hopeful that the present session will present efficient and sensible assist relating to each new and used electrical automobile gross sales. The federal government says it’s in ‘listening mode,’ so let’s hope the motor business’s considerations are being heard.”

The outcomes additionally draw comparisons to final 12 months’s Startline Used Automotive Tracker, the place the identical query about value worries was requested. In January 2024, 47% of sellers cited employees prices as the highest challenge, adopted by premises (33%), stocking (30%), car preparation (27%), and promoting (22%).

Startline’s Used Automotive Tracker is compiled month-to-month by APD World Analysis, identified for its enterprise intelligence and buyer expertise applications. This month’s analysis included 329 shoppers and 58 sellers.