April 2015 Dealer Profitability

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.

State-by-State

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. 

Queensland

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.  

Victoria/Tasmania

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. 

Western Australia

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%. 

Segments

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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