November 2015 Dealer Profitability

1 December 2015

Total Industry

Dealer profitability as measured by net profit as a percentage of sales (NP%S) was 1.5% for the average Australian dealer in November 2015. This was 0.2 percentage points down on the result of last month, but 0.2 percentage points up from November of last year.

State-by-State

New South Wales/Australian Capital Territory

The average NSW/ACT dealer NP%S was 1.7% in November which was 0.2 percentage points less than the October 2015 result. The used vehicle sales dipped by 0.8%, parts sales dipped by 1.2% and service sales saw an erosion of 2.7%. The Department Selling Gross for these departments also came under pressure with the used vehicle selling gross suffering the most and slipping by 6.3%.

Queensland

QLD reported a NP%S of 1.8%, for the November month. Although the sales in November 2015 have gone up by 4.5% as compared to October 2015 for the state of Queensland, the profitability has reduced by 0.3%. The Department Selling Gross for new and used vehicles have fallen by 6.0% and 6.4% respectively, the F&I Department Selling Gross has also reduced by 2.8% for Queensland.

South Australia/Northern Territory

Dealer profitability for the average SA/NT dealer was 3.0% in November 2015 – the highest performing state - with the state group continuing to be strong performers in new vehicles, improving their new vehicle Department Selling gross improving by 33.1% as compared to Oct 2015.

Victoria/Tasmania

VIC/TAS had a NP%S of 0.9% in November 2015, half of its YTD value of 1.8%. The Department Selling gross for new vehicles, used vehicles and service have eroded by 8.7%, 7.7% and 6.3% respectively in Nov 2015.

Western Australia

NP%S for the average WA dealer was 0.3 % in November 2015 which was a 0.1 percentage point decline on the October 2015 result. While the sales in the used vehicle department were up by 13% the new vehicle sales have come down by 2.0% in November 2015. The gross for new vehicle department slipped by 12.7% and the selling gross for new vehicles came down by 41.7%.

Segments

Each of the markets segments experienced declines in NP%S for November 2015, when compared with October 2015. The Luxury segment was the most profitable with 1.8%, the prestige segment had a profitability of 1.1% and the volume segment had a profitability of 1.6% for November 2015.

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

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