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The 2014 Motor Trader Top 200 survey sees dealers taking advantage of buoyant new car and used car markets
The combined pre-tax profit for the MT Top 200 dealers surged 29% to £722m on turnover up 12% to £52bn.
The return on sales for the 2014 MT Top 200 averaged 1.3%, a marked improvement on the performance in the 2013 report when the average was just 0.9%.
The new car market was fuelled by low finance costs and the rising popularity of PCPs, which accounted for over 90% of retail sales for some premium brands.
An improved housing market also inspired confidence among retail buyers, while the strength of sterling and the downturn in major European car markets prompted many brands to target the UK for volume sales.
No wonder that many of the Motor Trader Top 200 groups were on a roll in 2013, hitting quarterly volume targets with enhanced profitability.
But there were downsides. The hyper-competitive new car deals began to erode demand for nearly-new cars. A strong yen also hit some importers and retailers of Japanese brands. And as new car sales soared, some groups complained about the costs incurred as carmakers upped their demands on franchise standards.
Pendragon retained its position as the largest dealer group with increased sales of £3.85bn. It accounted for 7.4% of the total MT Top 200 combined turnover of £52bn.
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