The average retailer delivering a bumper profit of over £60,000 in May, traditionally a weak month.
The used car market continued to deliver record profitability levels. Margins remain very strong, with increased purchases prices being successfully passed on to the customer, according to dealer profitability specialist ASE.
“As yet there is no sign of this ending, and with the continued new car supply shortages limiting the supply of late plate vehicles, this is set fair for the foreseeable,” said ASE CEO Robert Jones.
Jones said that premium retailers in particular delivered a “very strong performance” for the month.
“Some of these franchises are producing unprecedented used car profitability, which is accentuating the strong new car performance and reduced costs,” he said.
Jones warned, however that costs for dealers are set to rise in the coming months as government support schemes run out.
“Motor retailers have undoubtedly benefitted massively from the Government’s support schemes, which started to tail off from the end of June. This will see costs rise and it will be a real challenge to maintain current profitability levels, particularly given the new and used car shortages we are seeing,” he said.