December 2013 Dealer Profitability

Total Industry

• 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.

Queensland

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. 

Victoria/Tasmania

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.

Western Australia

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%.

Segments

•  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.

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.

About Deloitte

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.