11:50 am, October 6, 2020
Dealers made a profit of £14,000 on average during August, ASE Global reported today.
The profitability specialist said it was a £28,000 improvement on the result for 2019 – August traditionally sees a major loss because of holidays and impending September plate change.
As such, it built on the strong profitability generated in July, with the average retailer return on sales also continuing its recovery to 0.5 per cent, added ASE.
Used cars have been the real shining stars since lockdown was lifted, it said, and this continued during August.
Used car return on investment had carried on climbing and was now within touching distance of 2019’s result, despite retailers being practically closed for two months.
ASE Global chairman Mike Jones said: ‘Whilst Q4 trading is uncertain, a profitable 2020 seems very much in reach for the average retailer, which is a very creditable performance given the disruption wrought by the Covid crisis.’
However, he added: ‘Despite the fall in new car registrations we have seen in September, anecdotal feedback on profitability points to a continuation in the trend we have seen in July and August.
‘As we look further into Q4 the outlook is slightly more uncertain, with local lockdowns already having an impact on trading performance in the areas they have been implemented.’
Dealers fight back from second-quarter losses with £52,000 average profit in July
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