The average UK motor retailer turned in a profit of £14,000 in August, building on the strong performance in July.
This represents a £28,000 swing on the prior year result, with August traditionally producing a significant loss, being impacted by holidays and the impending plate-change month of September.
“The £14,000 profit generated in what is traditionally a loss-making month saw the average retailer Return on Sales continue its recovery to 0.5%.
“Despite the fall in new car registrations we have seen in September, anecdotal feedback on profitability points to a continuation in the trend we have seen in July and August,” said ASE chairman Mike Jones.
“Whilst Q4 trading is uncertain, a profitable 2020 seems very much in reach for the average retailer which is a very creditable performance given the disruption wrought by the Covid crisis,” he said.
But Jones said that dealers were entering unchartered waters.
“As we look further into Q4 the outlook is slightly more uncertain, with local lockdowns already having an impact on trading performance in the areas they have been implemented. September should be strong, but Q4 uncertain Used car performance has been the real shining star since the lockdown was lifted and this continued during the month of August.
“Used car return on investment continued to climb and is now within touching distance of the prior year result, even despite retailers being practically closed for two months,” he said.