All dealer sectors reported an average net loss for January, as new inventory levels ranged from 14% to 22% higher than last year while overall costs also rose, according to consulting firm Spader Business Management.
Large dealers, defined as those having over $10 million in annual revenue, showed an average net loss of $5,241 – the smallest of the three sectors – compared with an average net loss of $2,986 last year.
January new product inventories, however, grew 22.4% for larger dealers to an average of nearly $4.8 million, up from $3.9 million in 2004.
The high levels represent a continuation of rising dealer inventories that surfaced late last year, particularly in the motorhome sector, as wholesale shipments outpaced retail sales.
All three dealer groups also reported an increase in total sales and new unit sales for January.
Other performance highlights:
* Large dealers posted an 11.7% gain in net sales for January to an average of nearly $1.2 million versus just over $1 million in 2004. Average new unit sales also rose 10.3% for the month to $758,980.
* Midsize dealers, those with annual revenue of $5 million to $10 million, showed an average net loss of $30,580 compared with a net loss of $23,982 last year. Total January sales grew 12.1% to an average of $347,494, and new unit sales rose 10.7% to an average of $234,406. New unit inventories were up 13.8% to $2.1 million versus $1.8 million in 2004.
* Dealers with less than $5 million in annual revenues posted an average net loss of $28,004 for January compared with $30,722 in 2004. Total sales were up 7.5% to an average of $111,053 while new unit sales remained flat, increasing 1.2% to $69,362. New unit inventories grew 19.8% to $1.1 million versus $941,6704 last year.