Total Industry

Dealer profitability as measured by net profit as a percentage of sales (NP%S) was 1.7% for the average Australian dealer in October 2015.

This result was below the calendar YTD NP%S level of 2.3% and also 0.6 percentage points down on the result of last month.

State-by-State

New South Wales/Australian Capital Territory

The average NSW/ACT dealer NP%S was 1.9% in October 2015 which was 0.5 percentage points below September 2015 result. This can be attributed to a lower new vehicle revenue, which has slipped by 1.2% in comparison to September 2015 and the new vehicle Department Selling Gross which dropped by 36.1% in comparison to September    2015.

Queensland

QLD had an average NP%S of 2.1% which is 1.1% lower than September 2015. The overall revenues were down by 8.4% and the Selling Gross was down by 15.9%. This position was a result of the drop in the new vehicle revenue which fell by 10.1%, and the new vehicle department selling gross slipping by 73.3%.

South Australia/Northern Territory

The state group of SA/NT was the leader in NP%S for the month of October 2015 with a NP%S of 2.9%. This strong position was reflected in all departments and led by new vehicle sales and supported by parts department and F&I. The new vehicle sales grew by 14% and the new vehicle margins increased by 20%. The Department Selling Gross for parts grew by 25.7% and the Department Selling Gross for F&I grew by 20%. SA/NT was the only state group which has the monthly NP%S above the YTD NP%S of 2.4%.

Victoria/Tasmania

VIC/TAS recorded a NP%S of 1.5% for October 2015 which was 0.5% down from September 2015. While the overall revenue is lower by 3.4%, the overall gross has slipped by 3.1% and the Selling Gross fell by 7.3%. The Department Selling gross for used vehicles has increased by 27% but this was negated by the new vehicles Department Selling Gross degradation of more than 50% (New vehicle Department Selling Gross has dropped by 53.1% as compared to September 2015)

Western Australia

The state of WA has shown a marginal improvement in NP%S for the average WA dealer in the month of October 2015. The NP%S was 0.4% in October 2015 which was a 0.1 percentage point improvement on the September 2015 result, but is lower than October of 2014 by 1.0%. Sales have increased by 33.8% as compared to September 2015 and Gross margins for the state were up by 38.8% in October 2015 as compared to September 2015.

Segments

The luxury segment was the most profitable segment for the second month in a row, with a NP%S result of 2.0% in October 2015.

The prestige segment and the volume segment both have a monthly NP%S of 1.8% in October 2015. While the prestige segment has lost 0.6% on month on month NP%S, the volume segment has lost  0.3% on NP%S month on month. 

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

© 2015 Deloitte Motor Industry Services Pty Ltd

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