While the semiconductor shortage has impacted carmakers and consumers alike, car dealerships are reaping the rewards.
Data from the National Automobile Dealers Association reveals that the average U.S. car dealership recorded a net pretax profit of $3 million through September, more than double the $1.3 million reported in the first nine months of 2020. This is also significantly above the $2.1 million average in net pretax profit recorded for all of 2020.
In addition, the average dealership’s operating profit has more than quintupled through the January-September period this year to $1.8 million.
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The National Automobile Dealers Association’s data also reveals that the average new vehicle selling price at dealerships was $40,985 through the first nine months of this year, a 7.1 per cent increase from last year’s $38,273. The average used vehicle selling price sold from dealerships rose by 18.9 per cent to $25,601. The average per-vehicle gross profit also jumped 65 per cent for new vehicles and by 36 per cent for used vehicles.
Moreover, according to the NADA report, the average number of new vehicles retailed through September this year rose by 16 per cent compared with the first nine months of 2020.
Average new car prices across the United States have been consistently rising throughout the year and in September topped $45,031, up 12.1 per cent, or $4,872, since September last year. This was also the first time in history that they have crossed the $45,000 mark.
