Car dealers expect the amount of paperwork handled by dealerships to increase over the next three years, according to research by EDM Group.

The research showed that 44% of car dealers surveyed expect an increase, with 12% anticipating a dramatic rise.

57% of car dealers said that over half of their work is paper-based, and one in five (20%) say that 75% or more is.

89% believe the increase would be due to regulation, while 79% suggested changes to company rules and corporate governance as the reason.

Associate director, Automotive at EDM Group, Matt Collinge said: “The impact of more paperwork not only increases the chances of car dealers being exposed to fraud; it can also have a huge impact on customer service levels. Some 59% of respondents to our survey say they expect service levels to fall because of this – some 15% believe that the increased focus on paper will have a ‘very negative’ impact on service levels.

“When you consider the fact that 86% of people who experienced poor customer service from the last car dealer they dealt with would not go back to them, and 34% of people claim to avoid companies in the sector because they have a poor reputation, the impact of this on sales can be devastating.

“Many car dealers and finance companies are aware of the risks here and are working with organisations like us to automate much more of the sales process.”

EDM Group provides companies with effective and efficient ways to manage the rapidly growing volumes of information flowing into and through their businesses.