May 10, 2004 – March profitability hits 8.8%

swadminMay 10, 2004

March profitability for Top Gun dealers nationwide climbed to 8.8% even though floor traffic was flat compared to the same month last year. The profit margin for Top Gun dealers in March last year was 10.7%.

This represents net profit as a percentage of sales before depreciation and with all owner salaries adjusted to reflect the true value of the job performed. Rent amounts are also adjusted to reflect true market value of the facility when it is shareholder owned and leased back to a corporation.
The profit margin of participating dealers in February was 5.0% this year and 2.1% in February 2003. Year to date profitability through March was 6.6%, up from 2.9% in February and better than the 5.7% posted in March 2003. psb

Average Gross Profit per Vehicle Financed is based on the profits from all extended service agreements, the commissions on insurance policies and 50% of service maintenance programs, sold for at least three years. 2003 does not include DOC fees.