Profitability at the average UK motor dealership surged 21.5% to £96,000 in March 2014 compared to March 2013.

The buoyant performance in the plate-change month was largely due to strong new car sales allied to Q1 bonuses. Dealer profitability specialist ASE said the rolling 12 month return on sales figure now stands at 1.55%, the highest national figure it has recorded.

ASE chairman Mike Jones said that the used car performance had held up although there were signs of a “slight softening” in the April market.

Overhead absorption in the rolling 12 months to March improved to 56.7% compared to 55.7% a year ago. “It is pleasing to see the growth in overhead absorption, which is now making gains on a monthly basis,” said Jones. “This is a result of increased retail hours sold within the service department, a trend which should increase,” he added.

Original Story Taken from Motor Trader News – http://www.motortrader.com/latest-news/average-dealership-96000-profit-march/