April 2015 Dealer Profitability
Deloitte Motor Industry Services | 26 May 2015
Fewer vehicle sales in April saw dealer profitability dip to 1.7% after a strong first quarter in 2015. However, this result has only caused the YTD net profit as a % of sales figure to drop slightly since March, recorded at 2.3% for April 2015.
New South Wales/Australian Capital Territory
NSW & ACT recorded a YTD result of 2.1% exceeding the national average, despite the average NSW & ACT dealer for July performing just below that of the national average for the month of April. The used car department in NSW & ACT felt the pressure with a decline in average sales in April, however Finance Income on these sales remained strong.
The stand out result for the month was in QLD, where the average dealer returned 2.4%NP&S, a 0.9 percentage point decrease on March’s result. For YTD, the 3.1% average in QLD significantly exceeded the national average.
South Australia/Northern Territory
Despite contractions in new, used, finance & insurance and service sales, SA & NT produced results that exceeded that of the national average, with the NP%S for the state group recorded at 1.9%, down 1.6 percentage points since March, falling just short of their YTD NP%S of 2.5%.This state group saw a spike in back end activity in April, offsetting fewer new car sales.
Despite stable vehicle sales when compared with March 2015, VIC & TAS saw a weaker than average dealer performance down 0.7 percentage points at 1.5% for April. The YTD result also fell just below the national average.
WA recorded their NP%S at 0.8% in April. This drove strong growth in the gross profit per new vehicle sold when compared with March, causing a jump in this department’s contribution to overall profit. YTD NP%S as at April in WA fell just short of the national average at 1.5%.
Each of the markets segments experienced declines in NP%S for April, when compared with March. The Luxury and Prestige segments returned 1.9% and 1.8%, while the volume market experienced profitability at 1.5%.
Click the chart below for more details.
Dealership data contained in this document has been obtained from the eProfitFocus database. Over 800 dealers across Australia have contributed towards this data.
© 2015 Deloitte Motor Industry Services Pty Ltd
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