CAR DEALERS' NET PROFIT UP 13.4%
The National Automobile Dealers Association (NADA) has just released data for the typical dealership in this year’s first quarter and the numbers are very, very good. The average dealership produced a net profit before tax of $291,964, which is a 13.4% gain over the $257,499 recorded in the first quarter last year.
Total sales for the quarter were 7.3% ahead—the average dealership took in $12.085 million compared to $11.263 million last year. Total gross profit, including cost of goods but excluding Selling, General & Administrative costs or advertising, was $1.652 million, 6.1% better than last year’s $1.558 million. Adding those costs in, total expense was $1.360 million compared to $1.300 million last year, producing the $291,964 net profit.
New vehicle sales brought in $6.679 million at the average dealership, up 7.6% with the average new vehicle selling price of $33,135, 3.3% better.
The used vehicle department produced $3.992 million which was 7.5% better than last year, while the average price of a used vehicle rose by 3.5% to $18,879.
Revenue from Service & Parts was up 5.4% to $1.414 million. NADA says the average dealer spent 6.3% more on advertising, up from $113,662 last year to $120,811, with the average per new vehicle sold up slightly to $639 from $627 last year.