“While down from pandemic extremes, dealership profits remain higher than historical norms”
The average U.S. dealership’s profit slide accelerated during the first three months of 2024. While the Great Normalization from the record highs seen at the peak of the coronavirus pandemic clearly continues, the good news is that profitability for the typical franchised store remains well above pre-2020 levels.
According to the Presidio-NCM Average Dealership Performance Benchmark, net pretax profit for the average franchised store slid 32.4 percent in the first quarter compared with the same period in 2023. The average store posted a drop of 20.5 percent in last year’s first quarter, a rate of decline that generally continued throughout 2023. The dollar figure of the average store’s net pretax profit is not being shared.
“While the rate of decline accelerated as the year began, it’s important to view those results through the lens of normalization,” said George Karolis, president of The Presidio Group. “The declines aren’t extreme. It’s the profits at the height of the pandemic that were extreme. They’re just normalizing now.”