THE average UK motor retailer made a profit of £9,000 for the month of January, matching the result from 2019, according to figures released today by ASE Automotive Solutions.
Mike Jones, chairman of the dealer profitability specialist, said: ‘This represents a healthy start to the year, building on the optimism which we have seen since the decisive general election result at the end of last year.’
Overall used car gross profit earned during January rose by six per cent on last year, reflecting both the focus on this area by retailers and the strength of the used car market at the start of the year, said ASE.
Jones added: ‘The used car return-on-investment statistic continued to nudge higher as we saw increased gross profits generated from a slightly lower investment in stock. The rolling 12-month figure, currently at 78.4 per cent, will jump back above 80 per cent once the poor months we saw in Q2 2019 disappear from the figures.
‘The results from January are steady and early indications for February seem to mirror this, with registrations slightly down but profit holding steady. March will be the key, however, and this will all depend on the new car profitability, with some retailers already reporting that order banks are building slower than in prior years.’