August 2013 Dealer Profitability

Total Industry

• Profit has continued to drop off, after the June peak, with the total industry average for August at 1.4%

State by State

• This month has seen the lowest profit for QLD and VIC&TAS in 13 months. The average dealer in both states experienced a decline in the new department’s contribution to gross profit, which was largely driven by a decline in volume
• For WA the 0.1 percentage point improvement in NP%S was due to a strength in used grosses, with the state sitting above benchmark at $2739 per vehicle retailed for the average dealer
• The average SANT dealer experienced a 0.1 percentage point improvement in NP%S which was a result of increased volume in the used department

Segments

• NP%S declined in each of the segments this month, with the luxury segment experiencing the largest drop of 0.4 percentage points to 1.4% this month. This fall in profit for the average luxury dealership is mainly due to lower unit sales in the new department
• The prestige and volume segments both dropped 0.2 percentage points this month leaving the prestige segment at 1.5% and the volume segment at 1.4%.

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