March 2014 Dealer Profitability

Total Industry

• Profitability rebounded back to the January level at 2.3% this month. This is a 0.6 percentage point increase from February.
• Compared with March 2013, profitability this month was 0.3 percentage points higher, however on a YTD basis Q1 2013 ended at the same profitability level as Q1 2014 of 2.0%.

State by state

The average dealer in each of the states increased their bottom line this month with the biggest improvement coming from SA/NT with a 2.2 percentage point increase to arrive at a 3.3% result.

New South Wales/Australian Capital Territory

The average NSW/ACT dealer had a 0.6 percentage point increase this month to 2.1%. This was aided by an 8% increase in throughput, driven by higher unit sales and gross in both the new and used vehicle department when compared with February data. These results meant that the average NSW/ACT dealer went from back end to front end oriented from February to March.

Queensland

The average QLD dealer enjoyed a 0.6 percentage point improvement bringing its NP%S to 2.5% this month. The average QLD dealer has the strongest F&I contribution gross at 24% compared to the total industry average for March of 22%. Within the F&I department, high end/above benchmark penetration rates and dollars per contract for new and used coupled with below benchmark expenses, made this result possible.

South Australia/Northern Territory

As mentioned above, the average SA/NT dealer had the largest increase in profitability to 3.3% this month. While it would appear throughput dropped this month compared to last, grosses were stronger in the new department at $3,736 per vehicle retailed - beating both prestige and volume gross per unit benchmarks.

Victoria/Tasmania

VIC/TAS dealers improved 0.6 percentage points to 2.1% this month, the highest profitability for the average dealer since June 2013. The improvement was assisted by stronger grosses in the new department leading to higher selling gross - which increase by 3% compared to February data to 22%. This selling gross result is also the second highest among the states (behind SA/NT) and 6% higher than the total industry average.

Western Australia

As with the average VIC/TAS dealer, the average WA dealer had it's highest NP%S since June last year this month at 2.7%. While this result was only a slight increase from the 2.6% NP%S last month there was a 6.8% increase in revenue in the parts department which pushed this result up. 

Segments

• All segments enjoyed an increase in profitability this month with the biggest improvement experienced by the Volume segment of 0.6 of a percentage point.

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