McLEAN, Va. (May 18, 2011) -- First quarter results from NADA's monthly Dealership Financial Profile, which provides a snapshot of the financial condition of the average new-car dealership, portrays an industry well into recovery, says NADA Chief Economist Paul Taylor.
Despite challenges such as higher gas prices and generally slow economic growth during the first quarter, total sales at the average dealership were up 22.5 percent while expenses increased just 14.2 percent. The stronger financial performance yielded net profits before taxes of 2.4 percent for the typical dealer, Taylor says, which represents a 34 percent increase over performance in the first quarter of 2010. Service and parts sales have risen 11.5 percent compared to 2010.
"Dealers showed strength in all areas of operations in the first quarter," Taylor says. "Their strong performance suggests that as new-car production is restored, the stage is set for continued strong growth in the future."
Editor's note: For more analysis from NADA's Industry Analysis group and Chief Economist Paul Taylor, visit NADA's Dealership Financial Profiles online.
Contact:
David Hyatt
Vice President
NADA Public Affairs
(703) 821-7120
dhyatt@nada.org
Charles Cyrill
Director of Public Relations
NADA Public Affairs
(216) 870-8837 (m)
(703) 821-7121
ccyrill@nada.org