Car company Lookers experienced strong pretax profits due to strong car sales and motor parts sales. The car dealership reported pretax profit of £11.5 million, way up on their loss of £14.9 million last year.

The sale of new cars were up 13%, ahead of a market that declined by 6 per cent. The car parts business was boosted by customers looking to repair their used cars rather than purchase a new one.

The upswing for Lookers doesn’t change the fact that the car sales and car finance industry is likely to face a very difficult 2010. With increasing availability of personal loans, many dealer may find vehicle finance competition increasing.