Publicly listed dealer group Caffyns has reported that its new car and used car sales rose considerably in the four months to February.

New car volumes rose 20.6% on the equivalent period in the previous year, while used car volumes were up 10.6% and aftersales turnover held level.

Caffyns has bought land in Lewes, adjacent to its Land Rover dealership, for £2m, to expand the business and bring its off-site aftersales facility into the same location.

The enlargment of its Brighton Volkswagen dealership has been completed, on schedule and budget, and construction of a new £4.75m Volkswagen dealership in Worthing is scheduled to start in April 2013. It will replace the current dealership at Goring.

The company added: "Despite having made further progress during the period, trading conditions remain challenging. The full year outturn will, as always, be influenced by our performance in the crucial month of March.

"Our balance sheet remains strong and gives us the flexibility to take advantage of commercial opportunities."