Rapleys warns of dealership closures in 2010 |
| Thursday, 14 January 2010 | |
 This year will see further consolidation in the automotive property market, according to property consultant Rapleys LLP, with dealers disposing of more "unprofitable outlets".
Empty showrooms Rapleys estimated that by the close of 2009 there were "at least" 250 motor showroom properties vacant and on the market with "little demand from within the trade". As a result property values are down 30 to 40 per cent from where they were at the height of the market. In its overview of the market for 2010 Rapleys said there were "few signs" of an upturn, the re-introduction of 17.5 per cent VAT and the end of scrappage in February were bad for business and dealers feared the reduced volumes of new cars sold over the past couple of years will see reduced aftersales in the future. Extremely challenging "We anticipate 2010 will remain extremely challenging for those operating in the sector and we see yet further consolidation occurring through a combination of distressed and corporate insolvencies and the closure of smaller, more peripheral trading outlets." But it added that there are now "several well funded dealer groups actively seeking to pick up opportunities" and it was likely to see one major group purchase during the course of 2010. It said the petrol forecourt and roadside markets were showing much more promising signs of recovery. Related Articles
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