Most business owners would wonder why it's worth the effort for a
2.2% profit rate, but car dealers in general are thriving at that level.
The 2.2% pretax rate for dealerships last year included not only profit on new car sales, but used cars, and service and parts, the National Automobile Dealers Association says.
"Fierce price competition among dealers for sales and service left dealership profitability unchanged for the third straight year," said NADA Chief Economist Steven Szakaly.
Because cars have become so expensive — an average of $32,618 each — the amount of revenue that dealerships bring in is staggering even if profit margins are modest. It was $806 billion last year.
While more than 1 million workers were employed at dealerships last year, the average new-car dealer employed 64 workers. Wages are up 3.3% since 2011, and average wages are now $55,000 a year.
The myriad recalls last year, led by General Motors, meant big money to dealers. They collected $8.5 billion last year for recall and warranty work, up 21.6%.
Source: USAToday
The 2.2% pretax rate for dealerships last year included not only profit on new car sales, but used cars, and service and parts, the National Automobile Dealers Association says.
"Fierce price competition among dealers for sales and service left dealership profitability unchanged for the third straight year," said NADA Chief Economist Steven Szakaly.
Because cars have become so expensive — an average of $32,618 each — the amount of revenue that dealerships bring in is staggering even if profit margins are modest. It was $806 billion last year.
While more than 1 million workers were employed at dealerships last year, the average new-car dealer employed 64 workers. Wages are up 3.3% since 2011, and average wages are now $55,000 a year.
The myriad recalls last year, led by General Motors, meant big money to dealers. They collected $8.5 billion last year for recall and warranty work, up 21.6%.
Source: USAToday
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