Times may be tough. But, according to new figures from an authoritative source, dealers are averaging better profits than expected.

Professional service consultancy ASE says the average retailer should have produced a return on sales of 0.7% for 2011. That may not sound much. However, against the background of fewer vehicle registrations and a tough retail climate, it is better than ASE’s mid-year forecasts predicted. For the year to November, dealers made an average of £90,000 profit per site, even though for the last month of that total, they’d made a £5000 loss on average.

ASE foresees that dealers who focus their energies into used cars and aftersales will be best placed to make money until the new-car market recovers.

One concerning trend is that of overhead absorption which has now dropped to below 60% Working to keep the workshop’s diary full and tight control on expenses should help push this figure back towards its 80% bench mark.