7th March, 2016 · Feature

Dealer profitability at 1.5%

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In this article

South Australia/Northern Territory

SA and the NT led the way, with Dealer profitability for the average SA/NT dealer at 3.0% in November.

Queensland

QLD had a NP%S of 1.8% for November. Sales rose 4.5% from October figures but profitability was down 0.3%.

New South Wales/Australian Capital Territory

The average NSW/ACT Dealer NP%S was 1.7% in November, a drop of 0.2 percentage points from October.

Victoria/Tasmania

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

Western Australia

NP%S for the average WA Dealer was 0.3 % in November, down 0.1% from October.

Segments

Each of the market segments experienced declines in NP%S for November when compared with October.

The Deloitte Dealer Profitability Report for November 2015 shows that the average Australian Dealer profitability, as measured by net profit as a percentage of sales (NP%S), was 1.5% in November 2015.
The result was 0.2 percentage points down on the October result but 0.2 percentage points up from November 2014.

South Australia/Northern Territory

SA and the NT led the way, with Dealer profitability for the average SA/NT dealer at 3.0% in November. The state group continued its strong performance in new vehicles, improving New Vehicle Department Selling Gross by 33.1% as compared to October.

Queensland

QLD had a NP%S of 1.8% for November. Sales rose 4.5% from October figures but profitability was down 0.3%. The Department Selling Gross for new and used vehicles fell by 6.0% and 6.4% respectively and the F&I Department Selling Gross dropped 2.8%.

New South Wales/Australian Capital Territory

The average NSW/ACT Dealer NP%S was 1.7% in November, a drop of 0.2 percentage points from October. Used vehicle sales fell by 0.8%, parts sales by 1.2% and service sales by 2.7%. The used vehicle selling gross dropped 6.3%.

Victoria/Tasmania

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

Western Australia

NP%S for the average WA Dealer was 0.3 % in November, down 0.1% from October. Used vehicle sales were up 13% but new vehicle sales fell 2.0%. New vehicle gross was down 12.7% and the selling gross for new vehicles dropped 41.7%.

Segments

Each of the market segments experienced declines in NP%S for November when compared with October. 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%.