Posted 05/14/2018 11: 21: 09CET
The contribution of the second-hand vehicle was reduced compared to the previous year
MADRID, May 14 (EUROPA PRESS) –
The profitability of dealers closed 2017 with a “slight improvement” compared to the previous year after standing at 1.9%, compared to 1.88% in 2016, as reflected in the report Profitability of Distribution Networks prepared by Snap On Business Solutions for the National Association of Dealers in Motor Vehicles, Repair and Spare Parts (Ganvam).
As highlighted Ganvam, this increase is due to the improvement of the results of the establishments and, “especially”, to the “good” behavior of the sales area.
As for the areas of activity, vehicle sales contributed 60% of the profitability to the concessionaire in 2017, which was four percentage points more than a year before and the best result since 2008, “becoming the economic engine of the networks of distribution”.
In this sense, the sales of new cars were the “true artificer” of the “good” yields of the concessionaires, since, although the operations with used ones grew 10% in 2017, the contribution of the second-hand vehicle was reduced with respect to the previous year, leaving 8.4% gross margin in each operation compared to 9% left by the new one.
On the other hand, the spare parts accounted for 31% of the profitability of the concessionaires, two percentage points less than in 2016, while the repair workshops represented 9% of the profitability of these, also down two points with respect to the previous year.
As for the revenues of dealers, after-sales “only” contributed 16% of total revenues, one percentage point less than last year, while vehicle sales accounted for 84% of the money inflows, one point more than in 2016.
“The after-sales sector has to deal with the unfair competition of new business models that live in a legal limbo in terms of consumption obligations, risk prevention or the environment.” Therefore, energetic action by the different administrations is needed that pursues the illegal and defends the one who complies with the law “, assured the president of Ganvam, Lorenzo Vidal de la Peña.