Drivers snapping up luxury motors

People across the UK might be slashing their spending but some drivers are still opting to splash out on a luxury motor, according to one car dealership.

Pendragon's Stratstone dealership, which sells high-end brands including Aston Martin, BMW and Ferrari, saw pre-tax profits increase to £15.7 million during the first half of the year.

The dealership saw its total revenues rise 24.1% year on year, and exceeded the market performance with 20% in new car sales.

"Total revenue has increased principally due to strong performance in new cars, with the prestige car market recovering more quickly than the volume sector," the firm said.

For the first half of 2010, Stratstone posted gross profits of £93.9 million, an increase from £84.4 million in 2009.

Drivers buying the luxury models would benefit from shopping around for the bestcar insurance deal to avoid paying higher costs.

Evans Halshaw, the company's volume car retailer with 127 dealerships selling Citroen, Vauxhall and Ford products experienced flat profits of £123.3 million.

Stratstone saw a "V" shaped recovery, according to Pendragon, while Evans Halshaw saw a "U" shaped fightback.

But revenues fell 31% for Chatfields, a commercial trucks dealership, after the economic downturn. Pendragon says this illustrates the "slow recovery in the new and used truck and commercial vehicle sector".

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