November 2013 Dealer Profitability
Marionne Sooriakumar | 14 January 2014
- November saw a continuation of the decline in dealer profitability with the final NP%S result for the industry at 1.4%.
- The result is lower than the 2013 YTD NP%S and the result for the same month last year (both at 1.9%) indicating the slower performance of the closing quarter this year compared to the same period in 2012.
State by State
- The three more profitable state groups across the year – QLD, SA/NT and WA saw a decline in dealer profitability in November largely attributable to weaker performance in the front end.
- QLD saw NV grosses fall by $214 per unit, UV grosses fall by $176 per unit, and new finance dollars also softer by $103 per contract. The end NP%S result for the state was 1.6% – a 0.03 percentage point decrease on the prior month result.
- SA/NT saw NV grosses fall by $213 per unit, as well as a shortfall in new finance dollars generated with $316 less being earned per contract. The end NP%S result for the state group was 2.3% – a 0.02 percentage point decrease on the prior month result.
- While WA saw stronger performances of the new vehicle and F&I department in November, used vehicle volumes declined with 2.4 less units sold per sales person in November. This had a notable impact on cost recovery both within the department and also in overheads. The end NP%S result for the state was 1.8% – a 0.04 percentage point decrease on the prior month result.
- NSW/ACT and VIC/TAS saw marginal improvements in dealer profitability compared to the prior month. The average NP%S for the state groups were 1.2% and 1.3% respectively, representing a 0.10 percentage point and 0.02 percentage point uplift.
- NP%S declined for both the volume and the prestige segment returning 1.3% and 1.4% respectively. Only the luxury segment improved compared to the prior month with an end result of 1.4%.
- The November result for all segments this year was below the YTD NP%S and the NP%S result for same month last year.
Click graph below to see the full presentation.
General Information Only
This presentation contains general information only, and none of Deloitte Touche Tohmatsu Limited, its member firms, or their related entities (collectively the “Deloitte Network”) is, by means of this presentation , rendering professional advice or services.
Before making any decision or taking any action that may affect your finances or your business, you should consult a qualified professional adviser. No entity in the Deloitte Network shall be responsible for any loss whatsoever sustained by any person who relies on this presentation.
Deloitte refers to one or more of Deloitte Touche Tohmatsu Limited (“DTTL”), its global network of member firms, and their related entities (collectively, the “Deloitte organization”). DTTL (also referred to as “Deloitte Global”) and each of its member firms and related entities are legally separate and independent entities, which cannot obligate or bind each other in respect of third parties. DTTL and each DTTL member firm and related entity is liable only for its own acts and omissions, and not those of each other. DTTL does not provide services to clients. Please see www.deloitte.com/about to learn more.
Deloitte Asia Pacific Limited is a company limited by guarantee and a member firm of DTTL. Members of Deloitte Asia Pacific Limited and their related entities, each of which are separate and independent legal entities, provide services from more than 100 cities across the region, including Auckland, Bangkok, Beijing, Hanoi, Hong Kong, Jakarta, Kuala Lumpur, Manila, Melbourne, Osaka, Seoul, Shanghai, Singapore, Sydney, Taipei and Tokyo.
This communication contains general information only, and none of Deloitte Touche Tohmatsu Limited (“DTTL”), its global network of member firms or their related entities (collectively, the “Deloitte organization”) is, by means of this communication, rendering professional advice or services. Before making any decision or taking any action that may affect your finances or your business, you should consult a qualified professional adviser.
No representations, warranties or undertakings (express or implied) are given as to the accuracy or completeness of the information in this communication, and none of DTTL, its member firms, related entities, employees or agents shall be liable or responsible for any loss or damage whatsoever arising directly or indirectly in connection with any person relying on this communication. DTTL and each of its member firms, and their related entities, are legally separate and independent entities.