Car dealers in the UK made an average loss of £16,000 in August, according to ASE.
The automotive specialist said this week that the decline is typical of the lull that comes in the month before the release of new registrations plates, with car buyers dealing any purchases to get the new 65-plate. Indeed, this week the Society of Motor Manufacturers and Traders (SMMT) revealed that the number of new cars registered last month reached 462,517, which is a year-on-year rise of 8.6 per cent and the highest September figures ever recorded, showing that the industry is in fact still performing well.
Market research such as this is always valuable to those working in the motor trade industry, whether it is an individual repairing cars part-time or a large dealership. Not only can it help inform their stock and working practices but it will also inform their decision when it comes to obtaining a road risks insurance or combined motor trade insurance policy.
The ASE said that the £16,000 loss recorded in August 2015 was marginally worse than the same month last year, when dealers lost £15,000.
Mike Jones, ASE chairman, explained: "Ever since the plate change month moved to September, August has been a tough month for UK motor dealer profitability and 2015 continued this trend.
"The combination of the holiday season reducing working days with the impending arrival of the new registration plate results in August producing the largest single loss of any month."