The UK motor retail sector never stands still, and neither do we. Each year, my team and I dive deep into the performance of the most profitable UK dealers, using publicly filed data to paint a clear, credible picture of what’s really happening across the industry.
This isn’t a list based on size. It’s not about who shouts the loudest.
It’s about profitability, resilience, operational performance and ultimately, who is generating real cash in one of the UK’s most competitive and thin-margin industries.
We know this sector inside out, especially the retail environment where margin pressure, shifting OEM strategies, and used-car volatility collide. And as the data shows yet again, success today demands sharper decision-making than ever.
HOW WE BUILD THE LIST
Unlike rankings based purely on turnover, our approach spotlights the dealers who outperform on EBITDA. A clean, cash-generative measure that helps us benchmark genuine trading performance.
A few things matter to us:
- EBITDA over topline turnover: Turnover alone doesn’t tell the story. Profitability does.
- No add-back for stocking loan interest: Stocking finance is a fundamental cost of running a dealership, so we treat it as such.
- Adjustment for exceptional items: If something would distort the underlying performance, we strip it out.
- Data sourced directly from Companies House: We compare the latest published statutory accounts to build an accurate year-on-year view.
Do we capture everyone? Probably not!
But we capture enough, and with enough context to paint a reliable barometer of sector performance.
And because we live and breathe this market day in, day out, we layer in insight and interpretation that raw data alone simply can’t provide.
KEY TRENDS WE’RE SEEING ACROSS THE SECTOR
Profitability Takes a Hit
The standout headline: profitability across the sector is down £537 million year-on-year, a drop of roughly 25%, leaving total profits a touch above £2 billion.
Why the fall?
- Rising staff costs
- Rising interest rates (on bank debt and stocking finance)
- A softening of gross margins
- Overheads creeping upward
Across the top 100, EBITDA margins are averaging 2.76%, with profit before tax just 1.14%. A reminder of the razor-thin margins this industry operates on.
TURNOVER FALLS, TOO
Despite expectations that higher transaction prices might boost topline revenue, turnover actually fell 5.3%, settling just below £78 billion.
Part of that is linked to agency model transitions, particularly for Volvo, Mercedes, and some VW Group EV lines reducing recorded revenue for retailers.
DO THE BIGGEST STILL GET BIGGER?
In short…yes and no.
The top 10 groups still account for 46% of total turnover, consistent with last year. But even among the giants, profitability has slipped.
The top four by turnover remain unchanged:
Sytner, Arnold Clark, Vertu and Lookers
But when we switch to EBITDA ranking:
M&A continues to reshape the landscape too. We’re seeing fast consolidation and strategic divestment in equal measure.
HEADCOUNT – THE SURPRISE STORY
Despite cost pressures, the sector employed 6,000 more people this year, rising from 112,000 to 118,000.
This reinforces:
- The sector’s enormous economic importance
- The limited early impact of AI on dealership headcount
- The challenge ahead as NIC and minimum wage rises take effect
With labour already one of the biggest cost lines, next year will test the sustainability of this expansion.
USED CAR RETAILERS: THE BIG CLIMBERS
Used car specialists have been some of the biggest “movers” in the profitability rankings.
After a bruising Q4 2023 when residual value drops caused chaos for many, stability has returned, and used retailers who buy well, retail well and run lean operations have leapt up the charts.
Top EBITDA climbers include:
- Motorpoint – up 77 places
- AvailableCar (Graham Bell Holdings) – up 46
- Tom Harley Jnr – up 45
Used retail is proving once again that scale isn’t everything, discipline is.
LOOKING AHEAD TO NEXT YEAR
We expect three themes to define next year’s performance:
- Rising Employment Costs Will Bite Harder
With NIC and minimum wage changes already legislated, staffing decisions will become more marginal and more strategic.
- OEM Brand Realignment Will Continue
As new entrant brands grow momentum in the UK, retailers are increasingly switching franchise partners, especially where traditional brands have underperformed on UK product availability.
- Control What You Can Control
For most operators, the priority remains unchanged: maximise every profit opportunity within the dealership footprint.
CONTINUE THE CONVERSATION WITH US
If you want a clearer view of what’s really happening in the UK automotive market, this one’s worth your time. I recently sat down with James Baggott, CEO of Car Dealer Magazine, and John Veichmanis, CEO of Carwow, to dig into the Car Dealer Top 100 2025 and what this year’s numbers are telling us.
We get into the big shifts shaping the sector, the financial stories behind the movers and shakers, and most importantly, what’s coming next.
Head over to our Automotive page to watch the full conversation.
I’m there too, sharing our takeaways and the trends we’re seeing across the industry.
GOT QUESTIONS? WANT TO BENCHMARK YOUR PERFORMANCE?
My team and I work with some of the most successful groups in the UK, large and small, franchised and independent, new and used.
If you’d like to talk through these findings, benchmark your business, or explore opportunities in the current market:
Get in touch with the Cooper Parry Automotive team. We’re here to help.
