Car dealerships in the UK lost an average of £11,000 in February 2014, according to the latest composite data from ASE.
The dealer profitability specialist revealed that despite a three per cent year on year rise in new car sales, car dealers still suffered heavy losses in February. The figure, which is 29.4 per cent worse than the average loss of £8,500 in February 2013, comes after several years of improving performance.
For any car dealership that might have suffered losses, one way that you can recoup money while also limiting any financial outgoings is to get a great deal on your motor trade insurance. Not only will shopping around make sure you get the best price on your policy, but speaking to expert brokers to get the perfect cover for your business will also ensure you are not left out of pocket should anything go wrong in the future.
ASE has suggested that one of the reasons behind February’s losses – which is true of most years as February is notoriously the worse month of the year for the motor trade industry – was that many firms looked to clear used car stock ahead of the surge of part exchanges the following month. March sees the unveiling of the year’s new number plates so February tends to be quiet as people hold out for the new releases, in turn causing a hive of activity.
Mike Jones, ASE chairman, commented: “Once the accounts for the quarter are finalised we will see the extent to which dealers have taken volume bonuses into January and February.
“In addition we will also get an idea whether all of the registrations currently taking place are feeding through to sales, and whether the volume bonuses are large enough to make those sales profitable.”