Car dealers enjoy record profits in March

Car dealers enjoy record profits in March

UK car dealers generated record profits of £98,900 in March this year, according to recent figures from dealer profitability company ASE.

The figures revealed that profits in March rose 6.5 per cent compared to the same month in 2015. What’s more, it was the most profitable month on average that UK dealers have ever recorded, with a rise in new car sales being marked as the main reason. This last was due to pre-registrations being much less of a problem than in 2015.

With the renewed interest in the new car market during the licence plate change over time, dealers may be thinking of adding more stock to their showrooms to meet the increased demand. As part of this process, all car dealerships should ensure they regularly update their motor trade insurance.

Furthermore, the March figures boosted the first quarter figures, too. These rose 8 per cent compared to the previous year. Nevertheless, despite the encouraging profits, there was a continued decline in return on sales as a direct result of rising turnover.

Mike Jones, the chairman of ASE, said of the figures: “We also saw a continued increase in new vehicle sales and dealer self-registrations, however we are pleased to note that in March this was much more heavily weighted to an increase in sales.

“Whilst registrations rose by 5.4 per cent in the month, dealer new car retail and fleet sales rose by 4.6 per cent. This marks a significant change from 2015 where the increase in registrations was matched with a slight decrease in dealer sales.

“There are undoubtedly still a significant number of self-registered vehicles in the market requiring disposal. However there is no evidence that this side of this issue is increasing out of control.”