Gamble of the week: A car dealer with growth potential

Much of the easy money has already been made in car dealers, says Phil Oakley. But this is no ordinary car dealer.

Britain's car market is booming.New car registrations grew by more than 8% in April the 26th consecutive month of growth. New car sales are forecast to top the pre-recession peak of 2.4 million this year.

That's good news for the likes of this Aim-listed company, the sixth biggest car dealer in the UK. But how long can the good times last?The market for new cars in Britain looks increasingly like a debt-fuelled boom, with nearly four out of five cars bought on credit.

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Phil spent 13 years as an investment analyst for both stockbroking and fund management companies.

 

After graduating with a MSc in International Banking, Economics & Finance from Liverpool Business School in 1996, Phil went to work for BWD Rensburg, a Liverpool based investment manager. In 2001, he joined ABN AMRO as a transport analyst. After a brief spell as a food retail analyst, he spent five years with ABN's very successful UK Smaller Companies team where he covered engineering, transport and support services stocks.

 

In 2007, Phil joined Halbis Capital Management as a European equities analyst. He began writing for MoneyWeek in 2010.