Sales at Franchised Dealers’ Service Departments Remain Above $80 Billion
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McLEAN, Va. –
The annual report from the National Automobile Dealers Association showed sales figures generated at franchised dealerships’ service and parts departments as well as body shops in 2012 exceeded $80 billion for the second year in a row.
The exact figure according to NADA Data 2013 came in at $81.35 billion, representing a 0.1-percent dip from the 2011 level.
Going back to 2000, only three times have sales generated by this department slipped below $80 billion industry wide.
The report indicated those instances occurred in 2000 ($78.83 billion), 2009 ($76.21 billion) and 2010 ($77.63 billion).
The industry still has room to grow in order to reach its recent high, which came in 2004 when NADA found that franchised dealership posted $85.48 billion service department sales.
Breaking down last year’s total, the report showed $36.06 billion of the figure came from total service labor sales, triggered by a 9.9-percent year-over-year jump in internal sales.
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The remainder of the 2012 service department sales figure came through parts sales, which tallied up to be $45.40 billion. Again, internal parts sales created most of that jump as that metric moved 7.9 percent higher year-over-year.
NADA also mentioned the percentage of dealerships with on-site body shops fell to 34 percent in 2012 from 36 percent in 2011.
Total auto bodywork performed by all new-vehicle dealerships remained relatively stable from 2011 to 2012 at $6.9 billion.
Furthermore, the report offered more details about the profile of the average franchised dealership’s service and parts operation, including:
—Total service and parts sales: $4,613,241
—Total gross profit as percent of service and parts sales: 46.00 percent
—Total net profit as percent of service and parts sales: 5.97 percent
—Total number of repair orders written: 13,702
—Total service and parts sales per customer repair order: $247
—Total service and parts sales per warranty repair order: $243
—Number of technicians (including body): 13
—Number of service bays (excluding body): 18
—Total parts inventory: $300,420
—Average customer mechanical labor rate: $99
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