Consulting firm Urban Science believes that auto sales per dealership in the US will reach a record level this year as automakers will boost vehicle deliveries.
According to the consulting firm this year sales per dealer will go up with about 839 vehicles compared with 2012 record of 812. The company relied on an industry estimate of about 15 million car and light-truck sales for 2013. Dealerships are getting a boost from the light-vehicle sales in the States which increased around 10% in 2010 and in 2011 and 13% in 2012, the highest level since 1984.
“We have a good balance of sales and stores, allowing for fewer incentives and increased dealership profitability, ” John Frith, vice president of retail channel solutions at Urban Science, said in the statement.
Dealers heavily rely on the vehicles sold per dealership, as these sales bring service bonuses and high-margin parts, according to a Kevin Tynan, a senior analyst for Bloomberg Industries. In 2012, the number of auto dealerships in the United States increased 0.5% to 17,851 units and the consulting firm Urban Science predicts that the ‘normal’ level of sales per each dealership will be around 830 units.