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A new report has highlighted the difficult trading conditions faced by car dealers in the UK.
The annual car dealership report by Ernst & Young has revealed that car dealerships are being negatively affected by a number of factors, including weakening consumer confidence and falling disposable incomes, reports the Guardian.
Indeed, the report goes further, pointing out that two of the UK's largest banks are particularly exposed to the future of the sector.
"Unexpectedly buoyant sales in 2007 will have helped many dealer groups, but pressure on margins will eventually take their toll," said the report.
"If sales decline significantly in 2008 as a result of the recent credit crunch, we may see more failures."
According to the organisation, those businesses which are now the most vulnerable are those with turnovers of less than £100 million - effectively small to medium-sized enterprises.
Ernst & Young has a history going back to the 19th century and was established by Alwin C Ernst and Arthur Young.
