The average new-car dealership in the United States rang up sales of $21.6 million last year, an increase of 8 percent over 1995 and a gain of 50 percent over 1992.
The figures are from the Average Dealership Profile, which will appear in the 1997 Automotive News Market Data Book. The profile was compiled by the Industry Analysis Division of the National Automobile Dealers Association.
Net profit before taxes for the average dealership in 1996 was $323,801, or 1.5 percent of total sales. That was up from $280,109 (1.4 percent) in 1995. In 1992, the net before taxes was $199,778, but the profit margin (1.4 percent) was about the same as in 1995 and 1996.
Vehicle selling prices have risen steadily through the years. In 1996, the average selling price of new vehicles was $21,750, up 27 percent from $17,100 in 1992. The used-car spread is considerably greater. Last year's average selling price was $11,600, which was 39.5 percent above 1992's $8,314.
Last year, 58 percent of the average dealership's revenue came from the new-vehicle department; 30 percent was derived from used-car sales; and 12 percent came from service and parts sales. In 1992, used-car sales brought in only 25 percent of gross revenue.
Advertising expense in 1996 was $439 per new unit retailed, up from $416 in 1995.
The Automotive News Market Data Book will include dealer expense and revenue figures for each of the last five years.
The special publication will be issued May 28, and is included in annual subscriptions to Automotive News. It can be purchased separately for $19.95. For subscriptions or single copies, call (800) 678-9595.