TWO major dealer groups that reported a fall in profits in the past half-year have blamed the long-running row over car pricing. Ryland Group and Pendragon said the continuing focus on car pricing discouraged car buyers, but added they expected the market to recover now the Supply of New Cars Order 2000 has been published.

At Pendragon, the firm reported profit before tax for the six months to June 30 down to £10.5 million from £12.2 million the previous year on turnover down from £997.7 million to £880 million.

The firm backed predictions that the Order would benefit larger dealerships, with Pendragon concentrating on major brands, such as Ford, to increase its buying volumes and achieve the highest discounts.

Ryland Group reported pre-tax profits to the end of June down to £1 million, from £2.7 million the year before, on turnover up from £283 million to £365 million.

The firm, which still owns a 25% stake in leasing firm Arval, now part of a joint venture with PHH Vehicle Management, said it expected its financial situation to improve at cheaper list prices tempted buyers back into the showrooms.