The results were revealed as founder Brian Gilda called for a new approach to boost the UK's flagging economy.
Peoples delivered a bumper 26% rise in pre-tax profits to £2.03 million for the year to July 31, 2012. Turnover rose by 1.6% or £2.36m to £146.7m as sales of new cars improved and the company maintained its grip on costs and reduced stock levels.
The period saw the company enhance its presence in the north- west of England by acquiring the Greyhound Ford family business in Accrington. This has been renamed Peoples of Accrington.
The company already had showrooms in and around Liverpool, at Bootle, Prescot and Speke Road.
Peoples, which has about 430 staff in the UK, has sites in Edinburgh, Falkirk and Livingston.
Mr Gilda said Peoples' momentum had carried over into the first half of its current financial year, with sales up "significantly" on the same period last year.
Last week saw the company launch the Peoples Living Wage, paying staff at least 10% above the National Minimum Wage.
Commenting on trading, Mr Gilda emphasised the importance of affordable finance deals in driving the company's profits.
He said: "The key issue for me has been the quality of my management team, and the fact that Ford at the moment are probably producing the best product that I can remember, and I've been in the business a while.
"So therefore you have a good product, and then you have finance companies and ourselves who are putting together good offers.
"The public are saying to themselves that they can't afford to not have a slice of this and I think that's what's happening now."
Mr Gilda, who expects a further boost from new car registrations this month, noted the improvements made in Ford engine quality after the motor giant's financial difficulties of recent years.
Stating that the Fiesta remained Peoples' top-selling Ford model, he said the introduction of the Fox, or 1.0-litre Ecoboost engine, had been "revolutionary".
Mr Gilda called for the UK Government to take a new fiscal approach to revive the economy.
He signalled his support for a 5% cut in VAT to 15%, for the 50% rate of income tax to be retained, and for more people to be taken out of the income tax bracket.
Mr Gilda said: "If you put a VAT cut into the retail car and van industry you can pretty [much] say you'll increase the industry. It's not sustainable in that it can't be brought on forever and a day.
"The type of world we would like to see get better is the construction industry. That employs more people, that allows more apprentices to be recruited and they buy cars and vans and they have things that require to be serviced.
"Getting the building industry and the construction industry to where it needs to be at, if any government can do that, would be the silver bullet for me."
Mr Gilda, who backed Johann Lamont's bid to become leader of the Labour Party in Scotland, called for voters to be equipped with more information before the 2014 independence referendum.
He said his personal preference was to stay in the UK, judging that Scotland would be better served by remaining part of an economy he thinks will correct itself in 2014.