Sue Robinson, the director of the National Franchised Dealers Association, an integral part of the Retail Motor Industry Federation, has spoken out clearly about the state of the car retail market. She indicates that dealers are having a tough time responding to high standards that have no impact on profit. Demands from manufacturers are apparently driving investment away from other, more important, areas of car sales .

Robinson said: Dealers told us that they are required to spend phenomenal sums on implementing standards that do not deliver profit back to the business, with one in ten spending in excess of £1 million in the last four years. In a new car market down by more than 3% on last year (2005), it is vital that these findings are acknowledged as soon as possible. With the average dealer currently making just 0.8% profit on every unit sold, every penny spent is critical. To make a financial outlay without any prospect of a return on investment would be considered commercial suicide in any business, and motor retail is no different.

The findings come at the end of a tough year for the motor retail industry. Many consumers are also avoiding car finance from dealers following reports of high rates and better deals elsewhere.