Car dealer makes a loss

Fri, 01 May 2009



One of the largest car dealers in the UK faced a crashing balance sheet last year, falling £15 million into the red. The slump was due to the economic crisis wiping out sales of new cars, and generally cutting the price of all vehicles .

Car dealer Lookers shut just under 30 car dealerships around the country, and also cut around 800 jobs. The car and car finance company showed how sales fell 12% throughout its 120 showrooms.

Finance Director David Dyson was reported in the vehicle finance news as commenting: "Normally you are looking at about 2% a month or £50 off a cheap, small car or £200-£300 off a bigger, smarter motor. But we were seeing falls of more than twice that and up to £2,000 a month on luxury 4x4s like Range-Rovers."

However, employing cost cutting measures, the firm remain resolute and confident that the scrapping scheme could benefit new car sales .
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