P&A Providers & Administrators
MenuMENU
SearchSEARCH

Total Dealer Revenue Topped $609 Billion in 2011, the NADA Reports

June 12, 2012
2 min to read


MCLEAN — The National Automobile Dealers Association’s annual industry report confirmed that new-vehicle dealers sold 12.72 million units last year, with total dealership dollar sales growing by 10.2 percent to $609 billion.


Sales in the new-car department (up 15.6 percent) surpassed the 9.8 percent revenue growth in used cars. Net pretax profit posted strong gains, with the typical store generating $785,855, according to the association’s NADA Data report.

Ad Loading...


“Typical dealerships saw sales increases in all departments for the year, led by new-vehicle sales, and costs moderated in relation to new-vehicle sales volume,” the association’s NADA Data report stated.


The industry realized those gains despite last year’s devastating earthquake and tsunami in Japan, which hurt vehicle supplies and slowed economic growth. The unemployment picture improved, but not as quickly as many hoped. Consumer confidence, the report stated, generally trended upward in 2011 and in early 2012.


“In 2011, vehicle sales continued to increase, driven by the need to replace a record-aged group of vehicles in service,” the report concluded.


Total gross margins moderated slightly in 2011 to 14.4 percent of total dealership sales from 14.5 percent in 2010. “With economic recovery continuing at a slow pace, the 2011 operating profit increased to 1.2 percent of sales from 1 percent,” the report stated.


Total expenses reflected ongoing growth in the overall U.S. economy, up 8.9 percent, but declined as a percentage of sales to 12.1 percent from 12.5 percent in 2010. Advertising expenses increased on higher unit sales, but fell on a per-vehicle basis to $628.

Ad Loading...


Total dealership net profit before tax as a percent of sales was 2.3 percent, up from 2.1 percent in 2010. Dollar profits gained 24 percent.


“Economic recovery and strong new-vehicle sales in 2011 helped the gross margin on the sale of new cars and trucks increase to 4.57 percent in 2011 from 4.49 percent in 2010,” the report stated.


Looking at F&I, aftermarket income rose in 2011 behind increases in F&I and service contract dollars. The F&I penetration rate, according to the report, rose to 77 percent for new cars. Acceptance rates for service contracts on new-vehicle sales rose by 0.7 percent, while the rate for used-car sales increase by nearly 3 percent.


“New light-duty sales of 12.7 million units in 2011 were 10.2 percent higher than in 2010,” the report stated. “Rising gasoline prices pushed the mix of new-vehicle sales toward a greater percentage of cars in late 2011 and early 2012. New-vehicle sales should rise by more than 10 percent in 2012, as vehicle supply increases.”

More Industry

Photo of gray SUV plugged into public electric-vehicle charger in parking lot
Industryby Hannah MitchellJuly 21, 2026

World EV Adoption Set to Grow

A new report says the segment, despite recent setbacks in some regions, is poised for acceleration as many countries look to reduce pollution.

Read More →
Bar chart of truck and SUV segments' weekly value change
Industryby StaffJuly 21, 2026

Black Book: Weekly Market Update

Wholesale automotive auction business stayed steady last week as bidders encountered lower prices, analysts observed.

Read More →
laptop with blue car on screen on a shopping website, Clear Costs Convert
Industryby Lauren LawrenceJuly 21, 2026

Pricing Transparency Drives Purchase Consideration

An annual study by JD Power found that clear pricing matters to consumers on automaker websites, so much so that it increases their purchase consideration.

Read More →
Ad Loading...
Bar graphic of used-car segment weekly change
Industryby StaffJuly 14, 2026

Black Book: Weekly Market Update

Used-vehicle market depreciation was the prevailing story in the wholesale market last week.

Read More →
Light-blue Fiat car parked on a sunny Chicago street
Industryby Hannah MitchellJuly 14, 2026

Smaller Is Looking Better

A growing number of Americans in the market for a new vehicle are opting for more affordable options, not waiting for market stability to bite the bullet.

Read More →
man sitting at desk using calculator with charts in front of him, to-go coffee cup on desk, rising and falling data chart in front
Industryby Lauren LawrenceJuly 14, 2026

U.S. EV Market Slowly Stabilizes

U.S. electric-vehicle interest is slowly stabilizing since a major dip in sales after last year's end of the federal EV tax credit, and hybrids remain the leading electrified power train.

Read More →
Ad Loading...
blue background, map of the world with connecting lights and an electric vehicle emblem in the middle
Industryby Lauren LawrenceJuly 8, 2026

Global EV Market Entering New Phase

Automakers are making investments to lower battery costs and optimize production to meet changing consumer needs.

Read More →
Bar chart showing week-over-week wholesale automotive price change
Industryby StaffJuly 7, 2026

Black Book Weekly Market Update

The holiday weekend, not surprisingly, put a drag on wholesale automotive activity last week, analysts observed.

Read More →
Photo of Honda CR-V SUV on two-lane road next to roadside trees
Industryby Hannah MitchellJuly 1, 2026

Auto Affordability in Context

Cox Automotive points out the complex circumstances that have led to eye-popping vehicle prices.

Read More →
Ad Loading...
Line chart of used-vehicle days to turn over past week
Industryby StaffJune 30, 2026

Black Book: Weekly Market Update

Automotive auction inventory increased last week, giving choosy bidders even more leeway.

Read More →