Dealer Salary
The average dealer lost £3,000 in December, an increase on the £1,700 recorded the year before.
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Historically December has been a tough month for UK motor retailers, with Christmas reducing both the number of working days and focus. According to accountancy firm ASE the furlough scheme helped retailers minimise losses incurred during the month.
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“Despite being locked down for a significant portion of the year and forced to operate through home delivery or click and collect, the industry returned an annual return on investment on used cars of over 80%. If you just look at the ROI for the periods when the showrooms were open then the returns are over 100%, showing the stunning performance from used cars in 2020.
“A slight worsening in the December loss reduced the return on sales slightly from November’s result, however the overall result of 0.94% for the year represents a very strong performance, given the disruption to operations we have seen during 2020. Overall profit levels were down year-on-year however this is very franchise specific, with some brands outperforming 2019.
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Jones said that Q1 was going to be difficult with the sector likely to remain in lockdown until after the March plate-change.
Dealer Salary
“Once the showrooms are reopened, we are likely to see a boom in trading as customers spend some of the cash they have saved during the lockdown period and they decide to come out of some of the leased vehicles extended in 2020,” he said.