Group 1 UK is making six times more per unit than Cazoo

Data for Group 1 Automotive UK shows the steadily-growing AM100 dealer group is making great profits from its sales of new and used cars.

Figures it published this week show its average gross profit per unit from the first nine months of 2022 rose 42% in new vehicle sales, to $3,633 (approx.. £3,149), while in used cars it dropped 11.3% to $1,653 (xx) versus Q1-3 2021.

In Q3 2022 alone, its GPU in new vehicles of $3,464 (£2,995) was six times higher than that reported by online car dealer Cazoo on Thursday, and its used GPU of $1,507 (£1,303) was triple that of Cazoo's.

This year, by September 30, Group 1 Auto UK had increased its new retail sales volume by 2.8% to 21,922 units while its volume of used vehicle retail sales climbed by 7.4% to 30,505.

The average sales price has also risen, by 0.4% in new and by 2.9% in used.

In the nine month period UK revenues have risen 7% to $2.14 billion (£1.85bn) - about one sixth of US-based Group 1's $12.15bn global revenues - and total gross profit reached $289.2m (£250m) 

Announcing the global results for Q3 and the year to date, chief executive Earl Hesterberg revealed total Q3 revenues were a new record for the company, at $4.2bn, which was a 22% rise on Q3 2021.

"Our team delivered another record quarter featuring substantial revenue and profit growth," said Hesterberg, who steps down from the chief executive role at the end of this year.

"Our consolidated vehicle and aftersales revenue growth for the quarter was well over 20% and our consolidated aftersales gross profit growth exceeded 25%."

Group 1's UK network of dealerships expanded recently with the takeover of a BMW dealership in Southend.