Three-year slump in profitability of franchised dealerships blamed on Increased competition and pressure on margins.
Europe’s motor trade body CECRA has issued a “wake up call” to any franchised dealers who’re still ignoring changes in the sector that will hurt profitability.
Nissan dealer profits hit a record high in 2015, averaging 1.5% RoS, yet have failed to take full advantage of successive years of growth, says MD Jim Wright.
The new car market looks set to hit a record level in 2015 but dealer profitability certainly doesn’t, warns ASE Global chairman Mike Jones.
The average UK motor retailer made an average of £73,200 during the plate change month of September, according to the latest ASE figures.
The average UK motor retailer made a profit of just under £4,000 in July, matching their result for July 2014, according to ASE data.
Nissan GB's car dealer network has seen a 66% rise in dealer profitability in Q2 of 2015 after the brand made a commitment to boosting returns.
During the four month period to June 30, Vertu Motors saw continued growth in like-for-like revenues and gross profits, according to chairman Peter Jones.
The average UK motor dealership produced a marginal profit in April 2015 of £3,000.
The average UK motor dealership produced recorded a profit of just under £93,000 in March.
The average UK motor dealer made a loss of £13,500 in February, a slight increase in the loss made in February 2014.
