The results are in! ASE has published its profitability figures for January and it was a positive month for motor retailers, with the average dealer making a profit of £5,000. This is a commendable increase from January 2017.

According to ASE’s report, used car sales remain strong, and whilst we will not be able to see the full picture until the end of the first quarter, this is a very promising start to the year ahead.

Although there was a decline in the average margin in January, this was balanced out by an improvement in stock turn, and return on investment in the used car market stays positive.

Figures Expectations

As expected, there has been a reduction in new car registrations in comparison to last year, but this is not quite as drastic as expected. Nevertheless, the gap between the number of used car sales and new car sales is widening, and is likely to expand further throughout the year ahead as demand for pre-owned vehicles increases.

With statistical evidence of the increasing interest in the used car market being released, dealers should be prepared for competition. As the year goes on, acquiring high-quality stock could become increasingly difficult, so now may be the time to make yourself aware of more wholesale options.

Effective organisation, refined aged stock processes and well-thought-out marketing strategies should be enough to ensure that your dealership stays ahead of the competition and capitalises on the increased interest in used cars.

It should be easier to assess trends at the end of March, when Q1 comes to an end, but it will certainly be interesting to see how sales have been affected by the ‘Beast from the East’ and whether or not the increase in profitability since last year will have been maintained.

For more information on how Click Dealer can help your dealership with stock management, get in touch today on [email protected], 01782 478220 or via our contact page.