Average car dealer made £43,000 profit in June

Average car dealer made £43,000 profit in June

Car dealers in the UK made an average profit of £43,000 in June, according to the latest figures from ASE.

June's health profit figures represent the first time in 2015 that a month has outperformed its 2014 equivalent. It also brings the rolling 12-month profit until the end of June to £209,000, with high sales numbers boosting performance despite the fact that margins remain tight.

Maximising profits is vitally important for any business. While car dealers can do this through increasing sales or improving profit margins, they can also help protect their takings by investing in a high quality motor trade insurance policy - this will offer cover for a number of risks a car dealer faces, including theft or damage, thereby ensuring profits are not dented in the case of the company being hit by any misfortune.

The figures also revealed that the high registration levels led to an increase of £15,000 in vehicle sales department gross profits, with only a £6,000 increase in expenses.

ASE chairman Mike Jones commented on the results: “This is significant as it is the first month of 2015 where dealers have outperformed their result for the prior year. This produced a reversal of the recent decline in overall rolling 12 month profitability, which once more rose over £200,000 to £209,000.

“The return on sales percentage remains under pressure given the increases in turnover, however the improvement in bottom line profit is good to see.”