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Honda champions dealer profitability

Honda claims it is the franchise to invest in after it delivered the 13th consecutive month of improved profitability for its network in August.

Year to date the average net profitability of a Honda dealer was up to £107,000 – a 97% (£53,000) improvement onlast year.

As an investment opportunity the brand makes a compelling case – nnualised return on capital employed for the average Honda dealer is 17.1% and the top third of Honda dealers (65) take this figure up to 35%.

The net average profit percentage throughout the Honda dealerships is 1.4% compared to the independently assessed industry average of 0.6%, the car brand says.

Nearly three quarters (72%) of Honda dealers reported improved year on year net profit and the top third averaged 2.9% ROS and £215,000 profit.

“This is a strong performance in a tough marketplace,” said Ewan Ramsay, general manager Honda (UK) car division. “What’s particularly pleasing is that the growth has come from improved operational performance across all areas of dealership departments. This is great news for existing franchise holders and will no doubt gain the attention of prospective investors. Honda remains committed to working with its dealers to deliver further growth and improved network profitability.”

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