Table of contents:
- Indicators that have gotten worse
- Indicators that remained at last year's level
- Indicators that have become better
Video: How Falling Demand For New Cars Affected Dealer Income
2023 Author: Natalie MacDonald | [email protected]. Last modified: 2023-08-25 03:54
The number of cars sold affects not only the revenue of the dealership's sales department - most of the performance indicators of a car dealership depend on it. ASE, an automotive dealership appraisal company, analyzed the most important dealer metrics affecting profits.
The data is based on the results of the dealer networks of ten car brands located in 11 economic regions. Three brands are premium, seven are mass market. For comparison, data for January-March 2019 and 2018 are used.
Indicators that have gotten worse
Service coverage on average across Russia decreased by 5.8 points - to 65%. The fall is observed in six regions, and the strongest is in the Central Black Earth Region, minus 13.6%. At the same time, 5 regions remained in positive territory: the Northern region showed the best dynamics, plus 10.8%.
- Sales department expenses in relation to gross profit grew by 1.8%. The largest jump was recorded in the Northern region - plus 11.4%. In four regions, the indicator decreased by an average of 6.2%. The strongest drop is in the Far East region, minus 12.6%.
- Number of cars sold per seller decreased by 4 points - to 82 pieces. In seven regions, a fall was recorded, and the strongest one was in the North, minus 10 cars. This indicator increased in three regions, most notably in the Far East, plus 25 cars per seller. Dealers of the West Siberian region have kept last year's figures.
- Average storage time of a new car in a warehouse increased from 42 days to almost two months. The biggest increase in warehouse turnover was in the East Siberian region - by 18 days, and the fastest selling cars are in the North Caucasus region.
Service department expenses in relation to gross profit on average rose 2.9%. The highest growth dynamics is in the Volga-Vyatka region, plus 14.5%. Only in two regions did dealers manage to cut costs - in Central and Central Chernozem, minus 4.3 and 2.2%, respectively.
Indicators that remained at last year's level
Parts department costs in relation to gross profit almost unchanged - 20.3% in 2019 and 20.7% in 2018. Dealers in 9 regions out of 11 have learned to save money. This is best done in the Northern region - minus 5.5%. In the Central and Central Black Earth regions, expenses increased by 0.3 and 2%, respectively.
- Gross profit from sales of spare parts remained at 25%. The stagnation of the indicator was recorded in the Far East - 29.6%. Dealerships in five regions managed to increase profits. The best dynamics in the Volga-Vyatka region - plus 2.6%. Five more regions went into negative territory, more than others - Central Black Earth - minus 3.3%.
Indicators that have become better
Overall service productivity (indicator of the use of working time by employees) reached 83.7% (plus 1.3%). The indicator increased in nine regions. In the Central Black Earth Region, the indicator increased 1.5 times and reached 128.6% - the best dynamics in the ranking. Dealers in the Volga-Vyatka region lost only half a percent, in the North - 8.2%.
- Average retail cost of a standard hour for 1 work order in Russia increased by 400 rubles - up to 3200 rubles. In the Urals region, the cost jumped by 1200 rubles - this is the strongest growth. A decrease was recorded in the West Siberian (minus 300 rubles) and Volga (minus 700 rubles) regions.
- Service gross profit grew by only 1 point - up to 72%. Dealers in the Far East feel better: the indicator there increased from 48.5 to 60.6%. The rise was recorded in five more regions. In East Siberia, gross profit remained at the last year's level - 66.3%, and in five regions it decreased - most of all in West Siberian, minus 4.2%.
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