F&I Management & Training

Pendragon, Britain's largest car dealership group, slashed its dividend after revealing a sudden freefall in the sale and price of new and used vehicles during June, dragging pre-tax profit for the first six months of the year down by 37%. During June, Pendragon said wholesale used car prices witnessed 'the biggest single monthly reduction in over five years', in particular for large executive and off-road vehicles. The company also said that private sector registrations, which includes car sales to small businesses and individuals, slumped by 12% in June. Overall, in the first half to June 30, private sector registrations fell by 4.9% and, in particular, declined by 7.9% between April and June. Pendragon said: "This is a reflection of falling consumer confidence and consumers deferring vehicle purchases" . In contrast, demand for company cars increased, albeit at just 2%. Total pre-tax profit fell from £33.5 million in the first six months of last year to £21.1 million on revenue down 8.2% at £2.4 billion. Pendragon reduced its interim dividend from 2p last year to 0.5p. In the used car market, Pendragon said national activity slowed down in May as dealers prepared for the slower months ahead by buying in less stock.

DATED: 01.09.08

FEED: AW