May 2015 Dealer Profitability

Deloitte Motor Industry Services | 26 June 2015

Total Industry

NSW, ACT, QLD , SA & NT all recorded profitability that was on par with, or exceeded both the MTD & YTD national average of 1.9% and 2.2% respectively. These results represented good growth since the drop in April.

State-by-State

New South Wales / Australian Capital Territory

Dealer profitability in NSW & ACT was recorded at 1.9% for the month of May. This was up 0.6 percentage points on the April result, and falls just short of the state group’s YTD NP%S of 2.0%. Strong growth in used vehicle sales, without an offsetting

Queensland

QLD recorded the strongest performance, returning NP%S levels of 2.8% for May, driving YTD profitability to 3.1%, exceeding the national average in both measures. While most departments remained relatively stable in their performance when compared with the April result in QLD, the service department made a more significant contribution to dealership profitability in May – with a higher gross margin and selling gross % gross performance from the department.

South Australia/Northern Territory

The average dealer in SA & NT performed in accordance with the national average, reporting a NP%S for May of 1.4%. This fell short of the YTD NP%S for the state group of 2.3%. The parts department in the state group was not as strong a contributor to dealership orientation when compared with April.

Victoria/Tasmania

VIC & TAS have reported a result indifferent to their April profitability at 1.5%. Coupled with YTD NP%S of 1.9%, they fell just short of the national average across the board. However, of note, the average VIC & TAS dealer focussed on cost control this month, with a slight contraction in dollar expenses per new and used vehicle sale.

Western Australia

WA achieved NP%S that was up 0.2 percentage points on April, recorded at 1.1% for the month of May. This drove YTD NP%S for WA to 1.4%. May saw a 5% increase in the contribution of the service department to the average dealership’s total gross profit, while new and used departments contributed slightly less when compared to April.

Segments

The Luxury and Prestige markets returned May NP%S results of 2.3% and 2.2% respectively, stabilising and strengthening their YTD results. The Volume market returned 2.0% in both MTD and YTD NP%S results – with the MTD result being an increase of 0.5 percentage points compared to April.

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.

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