Caffyns blames falling used car prices for £1.5m loss, but sees growth in new car sales

The car industry is always a fascinating one to follow, with ups and downs that can have a significant impact on companies big and small. Today, we’re taking a closer look at Caffyns, a well-known car dealer that recently reported a loss of over £1.5m, a stark contrast to the profit they made the year before.

One of the main reasons cited for this loss was falling used car prices, which had a detrimental effect on their bottom line. Despite an increase in revenue from the previous year, the company still found themselves in the red due to various factors, including impairments on property and challenges in their non-franchised businesses.

Chief executive Simon Caffyn highlighted the tough market conditions, with a significant price correction in the used car market and other economic pressures impacting their performance. However, he also pointed out some bright spots, such as increased revenue from new and used car sales, service revenue, and parts business.

It’s clear that Caffyns is facing some challenges, but they are also adapting and looking ahead to the future. With a strong order book for new cars and a focus on electric vehicles, they are positioning themselves for success in the ever-evolving automotive industry.

Despite the setbacks, Caffyns remains optimistic and grateful for their dedicated workforce, who continue to provide excellent service to customers. As they navigate the current market conditions and look towards the future, it will be interesting to see how they innovate and grow in the years to come.

Stay tuned for more updates on Caffyns and other players in the car industry as they continue to navigate the ever-changing landscape of the automotive world.