December 2013 Dealer Profitability
Amelia Taylor | 3 February 2014
- The industry has experienced a strong end to 2013 with the total industry up 0.7 percentage points from November. This improvement has translated to a profitability increase for all states and segments in the Australian car market.
- The industry has not experienced an increase in profitability of this size since June.
State by state
New South Wales/Australian Capital Territory
The average NSW dealer enjoyed a 1 percentage point increase in profitability this month. This was the largest increase in profitability when compared with the movements of the other state and territories. At 2.2% this is the highest average NP%S for NSW/ACT dealers since June.
An improvement of 0.9 percentage points was experienced by the average QLD this month and was the second largest improvement compared with the other states and territories.
South Australia/Northern Territory
While only having an increase of 0.1 percentage points this month, the increase took the average SA/NT dealer's profitability to 2.5% - the highest NP%S of the states and territories. The average revenue increased 15% this month which was as a result of a slight improvement in grosses and better control of expenses in the new vehicle department.
After 0.5 of a percentage point profit uplift, the average VIC/TAS dealer ended the year at 1.8 NP%S. This was driven by increased throughput overall and in particular in the new department with gross per vehicle slightly increasing (by $20 per unit) but more importantly an increase of 1.6 units per sales person. At 14.8 units per sales person, this result is higher than the luxury benchmark and 0.2 of a unit from achieving prestige and volume benchmark.
Similar to the average VIC/TAS dealer, the average WA dealer increased 0.5 of a percentage point this month to 2.3%. Similar to some of the other states and territories this is the highest NP%S for a month since June. This increase was helped by higher throughput in the used department causing the department's selling gross to increase by 3%.
- As mentioned above all segments increased their profitability this month with the luxury market achieving the highest NP%S of 2.5% and the largest increase of 0.9 of a percentage point.
Compare your dealership's results to the industry.
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