New data from the National Automobile Dealers Associate, the average U.S. dealership recorded net pretax profit of $3 million through September. A figure that's more than double the $1.3 million reported for the first 9 months of 2020 and more than the $2.1 million profit recorded for all of 2020!
www.autonews.com
According to the National Automobile Dealers Association, the average U.S. dealership recorded net pretax profit of $3 million through September. That was more than double the $1.3 million in net pretax profit reported for the first nine months of 2020. And it’s already well above the $2.1 million in net pretax profit recorded for the average dealership for all of 2020, which itself was an all-time record annual profit.
The average dealership’s operating profit more than quintupled through the first nine months of the year to $1.8 million. Net pretax profit includes operating profit and the automaker incentive money paid out to dealerships for complying with certain performance targets.
NADA has tracked dealership financial data in its current form since 2009. [NADA Chief Economist Patrick Manzi] noted in a February interview that there could have been years in decades past when net pretax profit would have exceeded 2020's $2.1 million when adjusted for inflation.
Manzi said in February that he expected the high profit levels to cool this year and go back to “more of a return to normal,” but so far that hasn’t happened. New vehicles have remained relatively scarce this year. And the latest figures from NADA show an increase in both volume and per-vehicle gross profits for new and used cars and trucks.
Average dealership profit on pace to shatter 2020 record, NADA data shows
According to the NADA, the average U.S. dealership recorded net pretax profit of $3 million through September. That was more than double the $1.3 million in net pretax profit reported for the first nine months of 2020.
www.autonews.com
According to the National Automobile Dealers Association, the average U.S. dealership recorded net pretax profit of $3 million through September. That was more than double the $1.3 million in net pretax profit reported for the first nine months of 2020. And it’s already well above the $2.1 million in net pretax profit recorded for the average dealership for all of 2020, which itself was an all-time record annual profit.
The average dealership’s operating profit more than quintupled through the first nine months of the year to $1.8 million. Net pretax profit includes operating profit and the automaker incentive money paid out to dealerships for complying with certain performance targets.
NADA has tracked dealership financial data in its current form since 2009. [NADA Chief Economist Patrick Manzi] noted in a February interview that there could have been years in decades past when net pretax profit would have exceeded 2020's $2.1 million when adjusted for inflation.
Manzi said in February that he expected the high profit levels to cool this year and go back to “more of a return to normal,” but so far that hasn’t happened. New vehicles have remained relatively scarce this year. And the latest figures from NADA show an increase in both volume and per-vehicle gross profits for new and used cars and trucks.
