Profits at Toyota and Honda dealerships are growing, while stores selling the Lexus, Audi, Infiniti and Acura luxury brands are seeing double-digit profit declines this year, estimates by Haig Partners show.
Nissan and Acura dealers experienced the biggest declines, the calculations, included in the quarterly Haig Report, show.
This is the first time such data has been published, said Alan Haig, president of buy-sell advisory firm Haig Partners in Fort Lauderdale, Fla. His company calculated the figures using aggregated data from NCM Associates, and plans to do so regularly from now on.
"This visibility into earnings will give owners, buyers and sellers insight into what they should be doing," Haig said. It can also spark conversation between dealers and automakers on ways to improve, he said.
"If you're a Nissan dealer and the factory is critical of your performance, you don't really know how your store is performing compared to other dealers," Haig said. "They can now look at this and say, "Nissan, your business model is netting dealers about $1 million a year, but Toyota and Honda dealers are netting $2.5 to $2.1 million.'"