The average UK motor dealer suffered a loss of just under Â£7,000 for the month of July, marginally worse than their performance in theÂ same month in 2016Â (a loss of Â£6,500).
This is to be expected given theÂ lower registration levels reported for the monthand the lack of â€˜fast startâ€™ activity from many brands, said performance improvement specialist ASE in its monthly analysis of dealer key performance measures.
â€œWe expect this trend to be continued through August and we will have to wait until the quarter closes for the final position to be settled,â€ said Mike Jones (pictured), ASE chairman. The average loss figure for July was Â£6,844.
â€œIn the month of July we saw continued growth in used car retail sales from dealerships with margins taking a slight dip compared to June.â€
Return on investment on used cars remains â€œhealthyâ€ at 88.5%, a significant improvement over the positionÂ at the start of the year.
Dealer stock levels remain high, driven by self-registration. However, there has been no increase in stockturn days through 2017.
â€œAftersales revenues continue to grow and for the past couple of months we appear to have stemmed the decline in the retail labour percentage of total hours.
â€œI will be monitoring this closely to ensure the recovery continues as there remains a huge retail opportunity for retailers through increased red and amber work conversion.â€
Many brands have realigned their expectations for the third quarter and the year as a whole.
â€œHopefully the plethora of scrappage schemes we have seen launched will generate some incremental retail business, reducing retailersâ€™ self-registration requirement to hit targets.
â€œProfits for the year as a whole should remain strong, albeit down from the records achieved in 2016.â€