News

Average dealer made a profit of more than £100,000 in June, latest data shows

  • Used car return on investment up to 94 per cent for rolling 12-month period
  • Rolling 12-month return on sales increased to 2.13 per cent – the highest ever reported by ASE Global
  • Warning bell sounded over rising costs in second half as furlough is wound up and rates support ends

Time 1 month ago

The average UK car dealer made £100,000-plus profit in June versus a £55,000 loss for the month in 2020.

That’s according to profitability expert ASE Global in its latest statistics report.

Chief executive Robert Jones said it brought to an end ‘a phenomenally successful first half’, with traders reaping the benefit of a strong retail market, healthy aftersales and reduced costs, mainly through government Covid support.


He added that used car return on investment was up to 94 per cent for the rolling 12-month period – and it would have been 151 per cent if just measured over the past three months.

‘We have seen profit per unit continue to increase and stockturn shorten, reflecting the current stock shortages.

‘With limited new car self-registrations, this situation looks set to continue into 2022,’ he said.

Meanwhile, the rolling 12-month return on sales rose to 2.13 per cent – the highest ASE has ever reported.


It attributed it to increased profits being compounded by a drop in turnover.

However, ASE warned that costs were set to rise during the second half of the year as the furlough scheme was wound up and the government’s rates support ended.

Increased franchising costs are also likely as brands push out new programmes.

‘With new cars in short supply, this looks set to provide a double hit to profitability,’ said Jones.

John Bowman's avatar

John has been with Car Dealer since 2013 after spending 25 years in the newspaper industry as a reporter then a sub-editor/assistant chief sub-editor on regional and national titles. John is chief sub-editor in the editorial department, working on Car Dealer, as well as handling social media.

More stories...

Advert
Server 51