Franchised dealers have complained about paying more for used vehicles. But they're grousing all the way to the bank, data from the nation's largest dealer group show.
Dealership financial profile data from the National Automobile Dealers Association show that the typical retail gross profit at franchised dealerships jumped 35 percent to $2,245 per used vehicle sold in the first 10 months of the year vs. the year-earlier period.
The average used-vehicle retail price rose 10 percent to $16,371 in the same period, the data show. The figure encompasses all model years.
NADA's dealership profile is based on data from NADA dealership 20 groups and represents a broad range of dealerships by size.
In light of the current used-vehicle shortage, NADA chief economist Paul Taylor expects used-vehicle prices to remain firm if the economy continues to grow even at a relatively slow pace. Used-vehicle gross profits depend on variables such as new-car incentives, he says.
For typical NADA members, used-vehicle sales revenue, including finance and insurance revenue, rose 21 percent in the first 10 months to $8.6 million.
NADA Used Car Guides, a subsidiary of NADA that analyzes and publishes used-vehicle price data, shows that the average wholesale price of used late-model vehicles, defined as those 2 to 5 years old, increased 11 percent to $15,911 through October from a year earlier.
Data from ADESA Analytical Services show that industrywide whole-sale used-vehicle prices continued to rise in November, up 2 percent from November 2009 to an average of $9,788.