September 2015 Dealer Profitability

Total Industry

Dealer profitability as measured by net profit as a percentage of sales (NP%S) was 2.3% for the average Australian dealer in September 2015.

This result was below the calendar YTD NP%S level of 2.4% but was above the NP%S of last month by 0.7 percentage points. This increase in NP%S for September 2015 can be attributed to increase in the selling gross for new vehicles.

State-by-State

New South Wales/Australian Capital Territory

The average NSW/ACT dealer NP%S was 2.4 % in September which was 0.6 percentage points above the August 2015 result. This can be attributed to an improvement in gross margins in new vehicles and service. The average NSW/ACT dealer earned $2,915 in gross per new vehicle retailed $282 above the national average.

Queensland

With an NP%S of 3.2%, QLD was the most profitable state for the September month. This position was a result of the strong performance in new and used vehicles section. The new vehicles department for the average QLD dealer saw the department selling gross, as a percentage of gross go up by 14% in September as compared to August.

South Australia/Northern Territory

Dealer profitability for the average SA/NT dealer was 1.9% in September as compared to 2.0% in August 2015. This dip in profitability can be attributed to a drop in selling gross across all departments.

Victoria/Tasmania

VIC/TAS was one of two state groups where dealer profitability for the average dealer improved month-on-month with NP%S for September at 2.0% as compared to NP%S of 1.2% in August 2015. This was a result of improvements in the department selling gross of the new vehicle and the service department.

Western Australia

NP%S for the average WA dealer was 0.3% in September 2015 which is same as the previous month. The overall sales and the gross have decreased in September as compared to August but the selling gross for new vehicles has improved preventing the NP%S for September from turning negative. The department selling gross for used vehicles has decreased by 56% for the average WA dealers in September as compared to August.

Segments

The luxury segment was the most profitable segment for the second month in a row, with a NP%S result of 2.8% in September. This also made it the only segment to have a NP%S result above its calendar YTD position of 2.6%.

The prestige segment was the next most profitable segment in September with a NP%S result of 2.4%, followed by the volume segment with a result of 2.1%. The prestige segment showed the most growth month on month of 0.8 percentage points followed by the luxury and then the volume segment. 

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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