The average car dealer made a profit of just over £31,000 in June, new figures have revealed.
According to data from ASE, UK car dealerships enjoyed profits of more than £45,000 in the second quarter of this year, with June’s performance coming in at £4,000 better on average that 12 months earlier. In the first six months of the year, the average British car dealer is £57,000 in profit, signalling the growing prosperity of the automotive industry.
The benefits of the improving profits can be seen in various forms, with many car dealerships opting to increase their stock of vehicles, expand or improve their premises, or move to a new larger site altogether. It is vital that when making such changes, the business updates its combined motor trade insurance policy accordingly; whether the total value of the cars on site goes up or additional features are added to the premises, this will need to be reflected in the insurance cover.
ASE’s Mike Jones commented on the figures: “The result continues to be driven by the vehicle sales department, with the quarter end bonuses driving profitability. With the SMMT revising upwards once more their estimate of total registrations for 2014 we should see continued growth in profits as we move through the second half of the year.
“Whilst dealers are certainly being pushed to sell ever increasing volumes of vehicles, profits are now being made consistently across the year rather than in just the peak registration months of March and September.”