The performance of the company which has 14 Evans Halshaw-branded outlets and four Stratstone dealerships in Scotland, comes after a succession of strong updates from motor dealers operating in Scotland.
Pendragon, which operates from 90 locations around the UK, reported a 19.4% rise in new car volumes in the three months to October 27. This compares to a 19.1% rise in sales of the brands that the group represents in the UK. New car sales were up 15.6% for the year to date.
This shows a great turnaround from the early months of the recession when the industry was supported by a Government subsidy scheme.
In used cars, Pendragon posted its 17th successive quarter of growth and said it expanded market share after seeing a 9.7% rise in like-for-like used units.
Pendragon added that its service, maintenance and repair business was boosted by the return to growth in the new vehicle market as a whole. Retail labour sales grew 2.9%.
It said: "Profitability in 2013 is expected to be materially ahead of expectations for the full year and we are cautiously optimistic about the prospects for 2014."
Panmure Gordon analyst Mike Allen wrote in a note for clients that Pendragon had produced a "strong" set of figures.
"Market conditions have been strong across the board in new, used and aftersales," he said.
He tipped the market to improve further as the UK economy improves.
Numis Securities upgraded its full-year profit estimate for Pendragon from £40 million to £44m. In 2012, underlying pre-tax profit was up 18% to £36.4m on the previous year.
Pendragon's shares closed up 1.25p or 3.25% at 39.75p, reinforcing a more than doubling in their price in the past year.
Pendragon operates Mercedes-Benz and Smart dealerships in Scotland under the Stratstone brand. Meanwhile, Evans Halshaw sells brands including Ford and Vauxhall.
Accounts filed at Companies House recently showed that Arnold Clark Automobiles, thought to be the largest privately held motor dealer in Europe, recorded a near 17% hike in pre-tax profit from £51.76m to £60.5m in 2012.
Earlier this month Vertu Motors, parent of Macklin Motors which has eight dealerships in Scotland, posted a 68% rise in first half profit growth.
Meanwhile the motors division of Park's of Hamilton (Holdings) recorded rising turnover and profit in the 12 months to March 31.