The average larger RV dealership saw a solid increase in profitability when the first seven months of this year are compared with the same portion of 2000, according to consultant firm the Spader Companies.
The Spader firm defines larger dealerships as having more than $5 million in annual sales, and the average larger dealer reported a 6.8% increase in net earnings during the first seven months of this year.
The average larger dealer earned $353,484 through the end of July.
Profits increased despite marginally lower new-unit inventories and new-unit sales revenue at the larger dealerships, the Spader firm reports.
New RV unit sales revenue at the average larger dealership declined 1.1% during the first seven months of this year to $4,928,301, while new RV unit inventories were down 2.4% to $2,730,640 at the end of July.
Meanwhile, the average larger dealer had higher used-unit sales revenue despite carrying a smaller used-unit inventory as of the end of July. Used-unit sales revenue was up 2.2% during the first seven months of this year to $1,811,780 while used-unit inventories were down 5.2% to $643,600 as of late July.
Total sales at the average larger dealership were essentially flat at $8,073,919 after the first seven months of this year.
Meanwhile the average larger dealer also reported healthy increases in F&I, parts and accessories and service income during the first seven months of this year.
Service income climbed 10.7% to $435,514 and F&I income soared 21.7% to $176,391 during the first seven months of this year. Parts and accessories income also increased 6.9% through the end of July to $437,177.