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Dealership income?

  • 10-08-2020 1:35pm
    #1
    kindalen
    Registered Users, Registered Users 2 Posts: 1,163 ✭✭✭


    Anyone have any idea what the rough % divide between sales, finance and service/parts in Ireland?

    I realise there are a lot of factors like location, brand etc.

    I presume new car sales are generally way behind service/parts in terms of % of profit they account for in a dealership?


Comments

  • #2
    Heres Johnny
    Closed Accounts Posts: 2,738 ✭✭✭Heres Johnny


    kindalen wrote: »
    Anyone have any idea what the rough % divide between sales, finance and service/parts in Ireland?

    I realise there are a lot of factors like location, brand etc.

    I presume new car sales are generally way behind service/parts in terms of % of profit they account for in a dealership?

    You've answered your own question with your middle paragraph, loads of factors at play making it pretty unanswerable.


  • #3
    swarlb
    Registered Users, Registered Users 2 Posts: 1,244 ✭✭✭swarlb


    It depends on how the Dealership is managed. I was involved with two separate Dealerships who concentrated on parts, and in turnover from parts at times exceeded both car sales, service and returns from warranty.
    Other Dealerships sell virtually no parts, and in turn stock very little.


  • #4
    Water2626262
    Registered Users Posts: 227 ✭✭Water2626262


    Good after sales income is key. Ideally a dealerships after sales net profit should cover 80% plus of its overheads. Income from car sales should be the icing on the cake. A garage that struggles with its after sales will be more sensitive to the market as car sales profitability can be quite volatile e.g. the aftermath of brexit and rise of UK imports etc.

    In terms of sales split it really does depend on the set up. I reckon circa 80% of revenue are car sales on average. Car sales net margin would typically be in single digits whereas aftersales net margin can be 20-30% plus.


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