“Average dealership profit declines in Q2 against tough 2025 comp as stabilization signs emerge“
Average dealership profitability slid from strong 2025 levels that benefited from a tariff-related demand spike, according to the latest Presidio-NCM Average Dealership Performance Benchmark. But several key operating metrics improved from the first to the second quarter, suggesting the industry’s prolonged vehicle margin correction may be stabilizing. Profit growth in fixed operations and finance and insurance helped support earnings, but expenses bear close watching.
- Gross profit per new vehicle retailed fell 13.5% year over year to $1,840 but improved 3.3% from first-quarter levels
- Gross profit per used vehicle retailed declined 10.0% year over year to $1,409 but rose for a second straight quarter to a level in line with the typical average the past few years
- Finance-and-insurance income per vehicle retailed rose 4.8% to $1,769
- Fixed-operations gross profit increased 5.2% year over year, generating 52.8% of total dealership gross profit