Dealers saw overall profits for the average site fall 26% in September to around £57,000 compared to £77,000 average profitability in September last year.
September is usually the second most profitable month of the year, however 2018 results were hit by the supply shortages caused by WLTP.
Overall profits for the month were down by over £20,000 per site resulting for a fall in profits for the quarter as a whole, according to ASE analysis of dealer composites for the month.
But the lower new car sales did reduce the volume of retailer self-registrations at the month end.
According to ASE, there was a 35% drop in the number of last-day registrations and this has resulted in a lower than traditional increase in retailer stock in a plate change month.
“This should bode well for used car profitability in Q4 and 2019,” said ASE chairman Mike Jones.
“The new vehicle challenge also had an impact on aftersales, with retailers performing a lower volume of PDI’s. Given the temporary nature of the change most retailers chose not to alter staffing levels, instead showing a 4% drop in service efficiency levels for the month.
“The end of September is usually a sign that retailers should tighten their belts after a period of hectic registrations and look to close the year as profitably as possible. 2018 has a different flavour with many retailers working out when their supply of new vehicles will free up.”
Jones said this could lead to a ‘bumper’ December for some but for many dealers this will not take place for many until March 2019.