December 2015 Dealer Profitability

Total Industry

Dealer profitability as measured by net profit as a percentage of sales (NP%S) was 2.5% for the average Australian dealer in December 2015. The result was the highest of the months in the last quarter of the calendar year.

The YTD NP%S for the average dealer has gone up by 0.4% in 2015 as compared to 2014 and now measures 2.3%.

State-by-State

New South Wales/Australian Capital Territory

The average NSW/ACT dealer NP%S was 3.0% in December 2015 and the state group had a NP%S 2.3% for the calendar year – a 0.4 percentage point increase on the result of 2014. 

Although the sales for December 2015 were less than the previous month by 5%, the dealers seem to have increased their Selling gross % Gross in all major departments and have managed to keep costs low leading to a profit of 3.0%.

Queensland

QLD saw a NP%S of 2.4% in the month of December 2015, down 1.3% from last December but up by 0.6% as compared to November 2015.

The New Vehicle Gross for QLD has improved by 10.6% over the month of November 2015.

South Australia/Northern Territory

SA/NT was the second most profitable state in 2015 with a YTD NP%S of 2.5%, this including a strong closing month result of 3.6% for the average dealer in December 2015.

As compared to 2014 the SA/NT dealers have managed to reduce their overheads by 11% in 2015 helping them improve the bottom-line.

Victoria/Tasmania

The average dealer in VIC/TAS achieved a NP%S of 2.1% in December 2015, with this result being just above their calendar YTD NP%S of 1.8%.

The new vehicle department has been a contributor to this growth, where the sales increased by 2% and the gross increased by 12% as compared to November 2015.

Western Australia

Western Australia saw a year end NP%S of 1.3%, up 1% since November 2015. This was fuelled by an increase in sales by 4.5% and an increase in Selling Gross by 8.9% as compared to November 2015.

The YTD NP%S for Western Australia was 1.3% for 2015, down 0.7% as compared to the YTD NP%S of 2.0% for 2014.

Segments

The luxury segment was the most profitable segment for the year 2015 with the YTD calendar result of 2.5%, up by 0.5% as compared to 2014. This profitability was largely boosted by strong new vehicle performance as compared to 2014.

The prestige segment had a NP%S of 2.3% YTD in 2015, up 0.3% from 2014 and the volume segment had a NP%S of 2.2% in 2015 up 0.3% as compared to 2014.

Dealership data contained in this document has been obtained from the eProfitFocus database. Over 800 dealers across Australia have contributed towards this data. 

© 2016 Deloitte Motor Industry Services Pty Ltd

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