September 2013 Dealer Profitability

Dorian Lapthorne | 8 November 2013

Total Industry

  • For September, dealer profitability recovered slightly from the downwards trend of the previous two months, partly due to quarterly incentive payments, to reach 1.8% for  September.
  • However this remained below the YTD NP%S level of 2.0%

State by State

  • All states benefited from the uplift in profitability for the month, with the result for September being stronger than the result for August all around the country
  • The stand out result for the month was in SA, where the average dealer returned 2.9% - again, largely the impact of quarterly incentive payments. For the YTD, the average for SA is now 2.4%
  • Dealers in WA and QLD both continued to experience profit levels above the national average, with the NPS% for both states reaching 2.2% (although WA was well short of its YTD NP%S level of 3.0%)
  • While NSW dealers, with an average NP%S of 1.6%, experienced their best month in the quarter, profitability there is still behind the national average with new car department in NSW particularly under pressure
  • The average Victorian dealer saw NP%S of 1.3% for September month, with Used cars and F&I continuing to be soft in that state

Segments

  • Each of the market segments saw an improvement in NP%S for September month, with both the luxury & prestige segments returning 1.8% this month. The volume market segment was at 1.7%.
  • Despite the improvement from August month, the September result for the volume and prestige segments was below the YTD NP%S of those segments (1.7% & 1.8% respectively).
  • The average dealer in the luxury segment did manage to nudge ahead of the YTD NP%S, but only by the barest of margins (1.78% v 1.77%).

Click the graph below to see full profitability presentation

September profitability chart

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