Car dealers 'feeling more confident'

Car dealers are feeling increasingly confident about their business, new research has shown.

According to the latest RMI National Franchised Dealers Association Dealer Attitude Survey, the car scrappage scheme has helped to bring relief to the sector, allowing dealers to feel more confident about their situation.

Car insurance customers looking for a new motor may have been able to find bargains in dealerships across the country in recent months as the recession knocked demand.

Sue Robinson, director of the RMI, said that car dealers have reported improved profitability, and that the scrappage scheme has helped this situation.

"Unsurprisingly we've found that dealers were happier with manufacturers who have been more willing to collaborate with their dealer networks in setting sales targets and more ready to appreciate the difficulties faced by their networks in the current market," Ms Robinson said.

She added that overall, there appears to be increased understanding between dealers and their manufacturers, and that despite ongoing uncertainty in the market, dealers are confident that business will continue to improve in the coming months.

The survey found that dealers believed there is value in holding a franchise, possibly indicating the belief in brand names that car insurance customers have when buying a new motor.

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