UK car dealerships made an average of £96,000 in March 2014, new figures have revealed.
The research by ASE showed that British motor traders performed very well in the important ‘plate-change’ month, with dealers bringing in £17,000 more on average than 12 months earlier. Always a busy month for the industry because of the release of the year’s new number plates, March proved more successful than anticipated – highlighting the sector’s continuing growth out of the recession.
With business booming in the automotive industry, it is important that companies ensure their motor trade insurance policy reflects any changes in their businesses. Many firms might be extending their operations by taking on more staff, dealing with more vehicles or expanding their premises, and those that do must make sure their policy still provides adequate cover in light of any developments – speak to experts such as ChoiceQuote to make sure.
According to ASE, the rolling 12-month return on sales figure has climbed over 1.5 per cent for the first time and now stands at 1.55 per cent. This is the highest national figure ASE has ever recorded.
Mike Jones, ASE chairman, commented on the findings: “The profit for the month of March was largely down to a very strong new car performance allied to the recognition of large bonus incomes for the quarter.
“This pushed the vehicle sales expenses as a percentage of gross ratio to the lowest level we have seen, with it now standing at under 62 per cent for the rolling 12 months. Taking the month in isolation this ratio was down at 42 per cent, providing the massive boost to profitability.”