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After the September registration surge, what next?

After the September registration surge, what next? November 19, 2014 by Mike Henshaw

It's still tough to make money!
September registration plate change was a big month for the UK motor industry producing a great result for many, with an average dealer profit of £75,000 which was up about £8,000 on 2013.
The industry did well with new product but margins were still under a degree of pressure.
The high volume of new car registrations provided more than expected 'trade-in' units. This will absorb dealer cash and a careful eye on the required liquidation of excess units is necessary to avoid cash flow problems.
Aftersales for most dealerships remains a steady performer. Whilst values here have not moved significantly we should remember that the gross profit provided from an hour of labour and the related Parts sales is significant, and contributes greatly to overall dealer performance.

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