Average car dealer makes £59 loss in January, ASE finds

The average car dealer in the UK made a loss of £59 in January this year, which is substantially down on £9,000 profit made for the same month in 2014.

The findings of ASE's research comes in stark contrast to the SMMT's announcement about the continual growth within the motor trade industry. ASE states that given the official registration statistics for January showed a growth of 6.7 per cent on January 2014, there is clear evidence of an increase in self-registered vehicles in the figures.

This huge leap from large profits to slight losses will come as a concern to anyone selling cars on a full or part-time basis. One approach that could boost their profits is to shop around for the best road risks insurance quote they can get – all car dealers will require this type of insurance, so saving money on the policy could provide a helping hand in ensuring the business stays in the black.

Reflecting on the findings, ASE says it is "very concerned" about the impact self-registered cars are having on used-car stock profiles, with the average stand in values rising in January as the cars registered in September 2014 were added to the mainstream stock.

The figures indicate that while sales are remaining strong, profit per unit fell below £1,000, which when the extra overheads are taken into consideration leaves the car dealers with little left in the till.