ASE’s latest survey, with data from November 2014 indicates 2014 will outperform 2013 for average dealership profitability.
The consultancy characterise 2014 as a year with “plenty of sales, with exceptional profits made in the quarter end months as dealers recognise bonuses.” The latest report views November 2014 in this context, the average dealer posting a loss of just under £10,000, that figure is over £5,000 worse than the loss recognised for November 2013. While the trough fits with the quarterly cycle mentioned above it should also be noted that dealers showed turnover increasing 13% in the month, which should mean Q4 targets will be reached.
The rolling 12 month return on sales percentage dropped by 0.05% in the month of November due to the pattern of higher level of sales and decreased profits. ASE predict a strong December performance to round out the year with “another record performance, beating last year’s Return on Sales of 1.47%”.
ASE note a slight improvement in efficiency, alongside improving aftersales performance. These gains have been wiped out by a steady increase in overheads which are recorded as increasing by 7% over the course of the past year.
Finally, ASE caution that “an influx of self registrations during December may depress Return on Sales for the year and prove a challenge for the first half of 2015.”
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