Dealer profits per new-car sale were better in March than in February. According to industry expert ALG, Inc., incentives rose to $2,773 for the average vehicle in March. This was the highest number seen since 2010, and this figure is a $71 increase from February.
Despite this large number, final February numbers also show the average auto transaction price increased by more than $350. According to Larry Dominique, President of ALG, this can only mean that dealers managed to hold onto more profits in March than they did in the previous month.
Dealer Profits by Brand
Let’s take a closer look at how some of the individual brands fared during March:
Incentives Transaction Price
Feb. vs. March Feb. vs. March
Chrysler (Chrysler, Dodge, Jeep, Ram, Fiat) up 3.1% up 4.3%
Ford (Ford, Lincoln) up 2.4% down 2.8%
General Motors (Buick, Cadillac, Chevrolet, GMC) up 5.8% up 2.1%
Honda (Acura, Honda) up 3.6% up 6.7%
Hyundai/Kia (Hyundai, Kia) up 1.9% up 4.0%
Nissan (Nissan, Infiniti) up 3.7% down 2.8%
Toyota (Lexus, Scion, Toyota) up 3.4% up 3.3%
Volkswagen (Audi, Porsche, Volkswagen) up 2.5% down 5.5%
While these numbers show most auto manufacturers did well in February, we know that this isn’t the case for everyone. Many dealers feel the need to accept a lesser profit margin in order to make their sales numbers grow. Some chalk it up to more informed consumers and resign themselves to the fact that their numbers will never be what they used to be. Others still can’t seem to put their fingers on why their dealer profits are shrinking. If your dealership falls into any of these categories, you need to call JKR Automotive Advertising today!
JKR Automotive Advertising: Help is Here
You shouldn’t settle for less. We can help you get your profit margins up without negatively affecting the number of sales. There are a number of factors that ultimately determine dealer profits, many of which you’re not considering. We’ll show you what they are, and get you on the right path to success. Take the time to make one simple phone call that will change the direction of your dealership almost overnight. Get the wheels in motion today by calling (321) 397-0777 or filling out the form on this page.