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The net profit at the largest RV dealerships nearly doubled, on average, when the first four months of this year are compared with the same portion of 2001, according to consultant firm The Spader Companies.
The largest dealerships, which the Spader firm defines as those with more than $10 million in annual sales, also had sharply higher new RV unit sales revenue and slightly higher new RV unit inventories, in dollar terms, as of April 30.
The average larger dealership earned a net profit $262,307 during the first four months of this year, an 83.6% increase over the $142,894 earned by the same group a year earlier, the Spader firm reports.
Meanwhile, new RV unit sales revenue increased 17.1% during the first four months of this year to an average of $4,192,844 and new RV unit inventories, in dollar terms, were up 5.6% as of last April 30 to $4,092,182, according to the Spader firm.
Total revenue at the largest dealerships also increased 17.4% during the first four months of this year to an average of $6,678,493.
Despite the fact the largest dealerships carried bigger inventories, their floorplan interest expenses during the first four months of this year were down 38% to $71,067, compared with $114,621 during the same period a year earlier.
All other dealer expenses increased so that total expenses at the largest dealerships were up, on average, 7.1% during the first four months of this year to $1,092,401, the Spader firm reported.
Dealer interest costs are lower because the Federal Reserve cut interest rates on numerous occasions during 2001 and it has left rates unchanged so far this year. RV dealer inventory loan rates are, in most cases, pegged to the prime interest rate, so they moved lower last year and have been unchanged so far this year.