November 2013 Dealer Profitability

Total Industry

• 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.

Segments

• 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.

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