$15 Million in Used Sales for Average Franchised Dealer
The average franchised dealer generated more than $15 million in sales from the used-car department last year, and more than two-fifths of the used cars those dealers combined to sell arrived at the stores through new-car trade-ins.
That’s according to NADA Data 2014, which is the National Automobile Dealers Association’s annual look at the financial profile of franchised dealers.
The report indicates that 26 percent of used cars sold by franchised dealers were sourced at the auction, which was second only to new-car trade-ins (42 percent).
Meanwhile, nearly a quarter (24 percent) came to the lot via trade-in on a used-car sale.
Four percent were sourced through a street purchase and another 4 percent were found through other avenues.
All told, the average franchised dealer had $15.23 million in used-vehicle department sales last year, which was a 6.0-percent increase from 2013. It also represented 31 percent of total sales, according to NADA.
Based on charts from NADA, net profit for the used department of the average dealer (including F&I) appeared to be down modestly from 2013 but was still above $100,000.
The average retail selling price on used cars sold by franchised dealers continued to climb, following a trend that began in 2010. In the past five years, the pricing has gone from around $15,000 to the neighborhood of $19,000, according to a NADA chart.