Selling cars is a high-turnover, thin-margin business. The ONS counted 20,066 businesses selling cars and light vehicles in 2024, turning over £182.7bn. The average turnover per business, £9,104,000, is pulled up by large franchised groups. Most independent dealers are much smaller.
| 2024 | Car and light vehicle sales |
|---|---|
| Businesses (VAT or PAYE registered) | 20,066 |
| Total turnover | £182.7bn |
| Average turnover per business | £9,104,000 |
| Staff costs, % of turnover | 4.9% |
| Bought-in goods and services, % of turnover | 90.6% |
| Left after staff and bought-in costs, % of turnover | 4.5% |
| Stock held, in days of purchases | 56 days |
Source: ONS Annual Business Survey, 2024 results (published 26 May 2026). It covers businesses registered for VAT or PAYE, so the smallest sole traders are not included. Averages are pulled up by the largest firms. For sole traders and partnerships, the owners’ own pay is not in staff costs: it comes out of what is left.
About £91 of every £100 goes on bought-in goods and services, mostly the vehicles themselves. Staff costs are only about £5. That leaves about £5 to cover everything else and make a profit, so small changes in buying price or selling price make a big difference.
Car and light vehicle sales: turnover rose 22% between 2019 and 2024, against a 24% rise in consumer prices, so it fell behind inflation. The number of businesses rose 7%. Staff costs went from 4.5% to 4.9% of turnover, and what was left after staff and bought-in costs went from 4.3% to 4.5%.
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