Dealerships Seeing Record Profit Margins
Nov. 19, 2021—Dealerships have experienced record net profit margins in 2021, according to a Kelley Blue Book report.
According to a report from the National Automobile Dealers Association (NADA), net profit before tax at the average new car dealership through the first nine months of 2021 was up an 128.2 percent over the same period in 2020. Net profit includes both operating profit and the incentives some automakers pay to dealers who exceed sales targets.
Dealerships selling domestic cars saw their pre-tax net profit rise 112.6 percent, NADA says. Those selling imported cars saw an even greater increase, 140.6 percent.