July’s trading was just above break-even for the average franchised dealership, according to data from ASE.
Car retailers recorded an average decline in profit of 31.7% during June as the average sum earned declined by £13,000 to £28,000 during the month, ASE has reported.
The September 1 introduction of Worldwide Harmonised Light Vehicle Test Procedure (WLTP) has been blamed for a 20% slump in car dealership profits during the key ‘plate-change month.
Profitability is at risk as car dealers are reacting to the declining new car market by not filling staff vacancies.
A £9,900 improvement in April profits for car dealers could be an indicator “the real prospect of a period of comparative prosperity”, according to ASE.
