• 62% in February say the changeover to electric cars is the most significant challenge facing their business – up from 45% in January
• Other problems rising in importance include falling desire for car ownership (33%, up from 28%) and staffing costs (28%, up from 24%)
• However, this month’s Startline Used Car Tracker also shows falling concern about finance availability, compliance and stock shortage.

February’s Startline Used Car Tracker shows that more than six out of 10 dealers (62%) say that selling electric cars is an issue – up from 45% in December.

Other rising concerns include a reduction in desire for car ownership (now 33%, up from 28% in December) and staffing costs (now 28%, up from 24%).

Paul Burgess, CEO at Startline Motor Finance, said: “It’s not easy to say why dealers have suddenly become more negative about electrification after a gradual improvement in sentiment over quite a long period in our Tracker research.

“However, our guess is that the ZEV Mandate consultation and a range of other news such as the closure of the Stellantis plant in Luton have had a negative impact. We’re in an odd moment where electric car adoption is increasing quite quickly in both the new and used sectors but the mood music around them feels sometimes uneasy.

“The increase in concerns around staffing is more easily explained. The higher rate of employer National Insurance announced in the Budget will take effect soon and we know anecdotally that dealers are unhappy about that change.”

However, worries over a range of other issues seem to be reducing including finance availability (now 48%, down from 50% in December), compliance (48%, down from 57%), stock shortages (45%, down from 48%), premises costs (19%, down from 29%).

Paul said: “While few of these changes are substantial month-on-month, they do suggest a slight lightening of their mood in some areas where dealers have held longstanding concerns. It’s especially interesting to see a big fall in worries over premises costs, where rates, rent and running costs have been rising for some time.”

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, 302 consumers and 58 dealers were questioned.