The average car dealership in the UK brought in a profit of £4,000 in July, according to the latest figures from ASE.
The dealer profitability specialist says that following July's profits, the rolling 12-month total stands £17,000 below the figure achieved in July 2014. The reduction in profitability comes despite a five per cent increase in overall turnover, therefore indicating that profit margins are being eroded away.
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 or road risks 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.
Mike Jones, ASE chairman, commented optimistically on the latest monthly figures: “Whilst this may not appear a significant result, making a profit outside the quarter-end bonus months is an indication of health within the industry and enhances dealer stability.
“The July performance builds upon the positive result for June and indicates that, despite the ever-present registration pressure, the slide in dealer profitability which we saw in the first five months of 2015 appears to have been halted.”