New car dealers in Canada are enjoying double-digit profit margins unseen since 2004, according to statistics compiled by DesRosiers Automotive Consultants and Seguin Advisory Services.
“Last year was a great year for new vehicle dealer profitability,” said Dennis DesRosiers, Toronto auto industry analyst. Total net profits across the entire new vehicle network increased by 21.3 per cent, he said. “With a decline in the number of dealers across Canada, net profit per dealer increase by 24.3 per cent to $449,300.
The number of new vehicle dealers across the country declined from 3,569 in 2000 to 3,331 in 2010. Of that total, about 700 dealers sell less than 500 new and used vehicles. This is good news for the junk car market because all these beautiful new cars will help keep the used car part market well stocked over the next decade!