Just more than two-thirds of U.S. auto dealers who participated in the quarterly Presidio Dealer Direction Survey expect dealership profitability to decline over the next 12 months as the industry continues to see performance fall off from pandemic-era highs.
“We’re headed back down the peak toward normalcy,” one survey respondent wrote.
“The factors that existed during the pandemic that created shortages of product have been largely eliminated,” another wrote. “Competition is ramping up again, and dealer pricing is following a competitive strategy that leads to decreased profit from new-vehicle sales.”