Market Intelligence

Insights that could only be brought to you by ProfitFocus

Every month the ProfitFocus team is in contact with hundreds of dealers and dozens of franchises across Australia, New Zealand, and the world. This, combined with the wealth of information in the eProfitFocus database - with over 850 dealers reporting across Australia and New Zealand alone - puts us in a unique position to bring you the latest trends, pressure points and opportunities in the motor industry as they emerge. 

Add to this the deep industry expertise of the ProfitFocus team, with hands-on operational experience at all levels. We do more than just tell you what's happening in the market, we let you know what it means for you.

That's the difference between market information and market intelligence.

Latest Motor Industry Update

Embracing the opportunity in uncertainty - Navigating Economic uncertainties

While the resilience of the Australian economy is commendable, with the global uncertainty since the GFC, Australian businesses have been increasingly confronted by the “new mediocre” globally for a better part of the decade. Explore how the Australian economy may change, what will that mean for your business 

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Understanding the ASIC Regulation Impact Statement CP279

Finance and Insurance income has been one of the major contributors to dealer profitability in recent times. We’ve seen its advent and rise to become one of the key levers of dealer profitability. Understand how proposed flex commission changes may affect the Australian Motor Industry.

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Embracing the opportunity in uncertainty - Motor vehicle retail in Australia

Australia has now successfully navigated the economic ups and downs of this world without slipping into a recession for a record 25 years. While this is a commendable achievement in itself, it also shadows some of the challenges that we face, making it difficult to clearly recognise these challenges and prepare for them. Understand the challenges the motor vehicle retail industry is facing in Australia and how you can exploit them to navigate these uncertain times.

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Leading Indicators of Profitability

Leading indicators are designed to flag potential problems early, so that preventive action can be taken. They also identify your areas of improvement, where you can focus resources in time to prevent undesirable business outcomes.

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Latest Dealer Profitability

2017 Q2 Dealer profitability

The dealer profitability as measured by net profit as a percentage of sales (NP%S) for the second quarter of 2017 was recorded at 2.3% and for the first half of 2017 was at 1.9%. This is the first time since 1997, the Motor Industry profitability has shown opposite movement to the consumer confidence in Australia. The industry saw its sales revenue increase by 10%, overall dealership gross increased by 7%, but the selling gross decreased by 5% and the overheads increased by 10%. Thus the profitability eroded by 0.2% as compared to first half of 2016.

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2017 Q1 Dealer Profitability

The dealer profitability as measured by net profit as a percentage of sales (NP%S) for the first quarter of 2017 was recorded at 1.6%, which is 0.4% lower than the first quarter of 2016. While the overall dealership revenue grew by 10% YoY the department selling gross has eroded by 12% putting pressure on the profitability. The gross contribution from selling new and used cars has contracted by 3% as compared to Q1 2016.

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2016 Q4 Dealer Profitability

The dealer profitability as measured by net profit as a percentage of sales (NP%S) for the last quarter of 2016 was recorded at 1.5% taking the yearly profitability for 2016 to 1.7% which was 0.5% down from 2015

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January to September 2016 Dealer Profitability

2016 has been an eventful year, the dealer profitability as measured by net profit as a percentage of sales (NP%S) has moved between a low point of 0.8% to a high of 4.1%. The YTD dealer profitability at the end of Qtr. 3 (end of september) was recorded at 1.9% which is 0.5 percent down from the same time last year. The quarter between July to Sept 2016 has recorded the lowest profitability in the last five years.

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Latest Motor Industry Alert

Motor Industry Overview 2017 - Dealer Profitability

Dealer Profitability – The number one issue in the Automotive Industry today. We will cover; Topic 1 - Top 20 changes to Dealer Profitability over the last 20 years Topic 2 - Current shifts in Dealer Profitability Topic 3 - The future of Automotive retail.

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How effective are your Fringe Benefits Tax (FBT) strategies?

Be aware of your FBT liabilities and risk for the financial year ending March 2016. Read our guide for more information regarding obligations and structuring opportunities.

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Motor dealer stamp duty implications

Motor dealer stamp duty implications Arising from recent court case - This SRO won on its arguments that the taxpayer’s service demonstrator vehicles (SDVs) were not exempt from Victorian motor vehicle duty. Purpose of the SDVs is to provide a loan vehicle for alternate transport not as a sales strategy.

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Preparing for your FBT return

Are you aware of the latest rates and thresholds that will affect your FBT liability? Click for a summary of the latest rates and thresholds for the year ended 31 March 2015.

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