UK motor retail faces its toughest year yet, new data reveals
The UK motor retail sector has just navigated one of its most challenging years on record, according to Cooper Parry’s (CP) latest analysis of the industry’s top-performing dealers.
CP's annual review, based on publicly filed data, shines a spotlight on profitability rather than size – revealing who’s truly generating cash in one of Britain’s most competitive, thin-margin markets.
The rankings focus on trading performance rather than size or turnover.
The methodology centres on EBITDA (Earnings Before Interest, Taxes, Depreciation, and Amortisation).
According to the data, sector profits fell by roughly 25 per cent, dropping £537 million year-on-year to just above £2 billion.
EBITDA margins across the top 100 dealers averaged 2.76 per cent, with profit before tax at a razor-thin 1.14 per cent.
Rising staff costs, higher interest rates, and creeping overheads have all contributed to the squeeze.
Contrary to expectations, turnover declined by 5.3 per cent to just under £78 billion, partly driven by OEM agency model transitions reducing recorded revenue for retailers.
The top four by turnover remain unchanged - Sytner, Arnold Clark, Vertu and Lookers.
But when ranked by EBITDA, Arnold Clark takes the top spot, followed by Sytner, Lookers, CEM Day and Vertu.
Used car specialists have also surged up the rankings, with Motorpoint climbing 77 places and AvailableCar up 46.
Despite cost pressures, the sector added 6,000 jobs, taking total employment to 118,000.
This underscores the industry’s economic importance and hints at the challenges ahead as NIC and minimum wage rises bite.
Ian McMahon (pictured), head of Automotive at CP, said: “This year has been a reality check for UK motor retail.
“Margins are tighter than ever, and the £537 million drop in profitability shows just how much pressure dealers are under.
“But the businesses climbing our rankings prove that discipline, agility and smart decision-making still win the day.
“As OEM strategies shift and costs rise, the operators who control what they can control will be the ones who thrive.”
