The average UK motor retailer delivered record profits of £110,000 in the September plate change month
Used cars were particularly strong performance has been the real shining star since the lockdown was lifted and this continued during the month of September.
“Return on investment continued to climb and the overall return for the month of September, taken in isolation, was 105%,” said ASE chairman Mike Jones.
Jones warned that lockdown 2 will inevitably incur losses in November with dealerships closed.
“The announcement of a return to lockdown will undoubtedly increase losses in Q4. Whilst retailers are much better equipped to continue trading during lockdown as a result of digital advances made during 2020, the great momentum which retailers had built since June will be checked by lockdown 2 leading to increased losses in November.
“This strong profitability performance pushed the rolling 12 month return on sales up to 0.74%. This is now back within touching distance of the ratio for the prior year. Actual profitability levels per site are lower than last year, because of the lower overall turnover levels, but this remains a very creditable performance in a highly turbulent year,” he said.