Zinda + Partners LLC

Car Dealers' Profits Way Up!


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.