Net dealership profit holds steady at 2.2%, says NADA
For the third straight year, net pretax profit at new-car dealerships as a percent of total sales was 2.2 percent, says NADA in NADA Data 2014.
The 2.2 percent figure represents sales in the new- and used-vehicle and service and parts departments, said NADA Chief Economic Steven Szakaly. Thatês more than a full percentage less than many other retailers.
Other highlights from the report:
« Total dealership revenue reached an all-time high of $806 billion in 2014, an increase of 8.6 percent from the year before.
« The average retail transaction price of new vehicles rose to $32,618, up 2.7 percent from 2013. Average used-vehicle retail prices also rose by 4 percent to $18,846.
« The number of retail customers buying a new- or used-vehicle service contract remained virtually unchanged from last year at 41.7 percent.
« With all the recalls in 2014, combined recall and warranty work performed by dealers jumped 21.6 percent to $8.5 billion.
And a couple of figures to have handy when discussing the effect dealerships have on the local economy: Franchised dealers, on average, employed 64 people per dealership. And dealership wages have risen an average of 3.3 percent since 2011, with employees, on average, earning more than $55,000 per year.Download Bulletin PDF