New Vehicle Sales – As we all know, new vehicle sales are off year to date. Sales though, have improved in July and August. New vehicle margins have remained level or have increased slightly.
Used Vehicle Sales – Stronger dealers are focusing their attention on the used department to make up for the lost sales in the new department.
Parts and Service – Sales and gross profits are increasing. This increase is offsetting rising employment and other costs.
Body Shop – Sales continue to grow as many dealers eliminate the department and smaller independent shops close. A tremendous revenue center for dealers with body shops.
F & I– This department continues to grow and is critical to maintaining profitability in the front end.
Profitability– Profits overall are consistent with last year.
Smaller Dealers – Profits and sales declines continue. Larger stores and dealer groups are faring better in this environment.
Who knows what the rest of the year will bring? Tariffs, Brexit, and interest rates will all be important factors.
If you have any questions regarding this article, please contact Paul McGovern at PMcGovern@DowneyCoCPA.com or at 800-849-6022.
