Average profits of £74,000 for car dealers in September, ASE finds

The average car dealer made a profit of £74,000 in the month of September, new figures have revealed.

According to the latest data from ASE, the average business selling cars has made £230,000 of profit in the year-to-date, with September’s figures £8,000 higher than those in 2013. However, with the large increase in the number of cars being sold, the relatively similar performances in profit for Q3 suggests that the margins being made on each car are being eroded.

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Commenting on its latest findings, ASE said: “Whilst we expect an increase in a registration month as a result of part-exchange vehicles, the rotation of demonstrator fleets and self-registered vehicles, the rise is normally limited to £100,000. This increase in stocks will start to impact negatively on the used car return on investment unless the vehicles are liquidated quickly.

“Overall profitability for the year looks strong with all signs pointing to a record overall result. The rate of increase over 2013 has definitely slowed and many dealers have self-registered cars to shift. However, 2014 should still produce a return of £230,000 per site on average.”