9:10 am, September 18, 2013
ANNUAL dealer profitability was up to 1.35 per cent at the end of July, compared to the same month last year.
The average dealer made an impressive profit of £6,000 for the month, in comparison to the £1,000 in 2012.
Dealer focus remains on new vehicle sales and this is expected to continue through the second half of 2013, according to ASE.
Despite the fact that used vehicle return on investment has worryingly dipped to 80 per cent, results show that average stock holding has continued to rise over the past year – dealers now hold £50,000 more stock than they were in July 2012.
Figures also reveal a six per cent increase in the average value, indicating a greater proportion of nearly new and self-registered vehicles in dealer stock.
‘Continuing the growth in record profitability through the second half of 2013 will be a challenge as some of the comparative profits from 2012 were very healthy,’ reports ASE.
‘There are certainly going to be plenty of cars registered – the key question is whether dealers are going to be able to sell them profitably.’
