The key number plate change month of March will be pivotal in car retailers’ efforts to achieve profitability in 2020, according to sector analyst ASE.
Car dealers achieved their lowest return-on-sales (RoS) figure since 2011 in 2019 after rounding off a “tough” year with a £1,700 loss in its final month, according to ASE.
Car dealers suffered a loss of £11,000 in November to all-but ensure the sector's average business incurred losses for the whole of 2019, ASE has reported.
The average UK car retailer saw profitability decline by 75% year-on-year in October and is likely to end 2019 with a 9% overall reduction in overall profit, ASE has reported.
The latest car dealer profitability analysis from ASE has revealed that the average retailer experienced a £3,000 year-on-year increase in profits during September.
Franchised car retail groups are choosing to exit the UK fleet sector as their leasing divisions attract big offers from banks and car manufacturers amid a squeeze on profits from their core retail operations.
The average UK car dealer lost £14,000 during August in what has been described as a “significant deterioration” on the break-even result achieved in the same month a year earlier.
July’s trading was just above break-even for the average franchised dealership, according to data from ASE.
Car retailers recorded an average decline in profit of 31.7% during June as the average sum earned declined by £13,000 to £28,000 during the month, ASE has reported.
Franchised dealer profit figures for May show on average a loss of almost £10,000 per site, according to data from ASE
Car dealers registered a “marginal” year-on-year improvement in profits during April, according to ASE – the month’s average total amounting to £5,000.
Mike Jones, chairman of ASE, is the latest industry expert lined up to help dealer and manufacturer directors better understand the opportunities ahead at the Automotive Retail Congress.
Car retailers improved their profitability by 4.4% year-on-year to an average of £118,000 during March, according to the latest data published by ASE.
Ford sold more than 9,500 fewer cars during March to top to the table of the month’s biggest registrations decline by volume during the crucial ‘plate change month.
Car retailers were unable to take advantage of a milder February on their forecourts as profitability statistics published by ASE showed a £19,600 loss during the month – matching 2018’s performance.
Dealers have started 2019 with a rise in profits, according to data collected by ASE.
Motor industry groups have given a mixed response to yesterday’s report from the Financial Conduct Authority, which highlighted certain dealer reward structures in motor finance and a need for clarity about commission payments.
Car dealers showed their ability to adapt to challenging market conditions by achieving an average profit of £2,900 during December, ASE has reported.
Car retailers avoided a repeat of the record losses incurred during November 2017 with their trading during the penultimate month of 2018, but still posted an £8,500 average deficit.
Franchised dealer profits in October were up by £7,500 in October year-on-year, after a £1,500 loss in October 2017, said ASE Global.
