Service counter

Service snapshots
A midyear report compiled by the National Automobile Dealers Association provides a financial profile of franchised U.S. new-vehicle dealerships in the first half of the year. Among the fixed ops snapshots:
  • Service and parts accounted for 12.2% of total dealership sales dollars.
  • The nation's 16,794 franchised dealerships wrote more than 155 million repair orders — an average of 9,246 tickets per store.
  • Dealership service and parts sales totaled more than $58.4 billion, not including some body shop sales.
  • Dealerships employed 267,125 service technicians (including body shop techs) and had more than $6.61 billion worth of parts inventory.
Source: NADA Data 2018: Midyear Report
Moving averages
Service, parts and body shop sales grew year over year for the average light-vehicle dealership in the first 6 months of 2018.
  2018 2017 2016
Fixed ops sales $3,672,762 $3,575,298 $3,490,214
Fixed ops sales as % of total dealership sales 12.20% 12.10% 11.80%
Fixed ops gross as % of total gross 49.10% 48.50% 46.80%
Warranty work as % of fixed ops sales 18.10% 18.80% 17.80%
Source: NADA Data 2018: Midyear Report
Profile view
More figures about the average dealership's service and parts operations through mid-2018
Total service and parts sales $3,477,529
Total gross profit as % of service and parts sales 46.20%
Total net profit as % of service and parts sales 16.50%
Repair orders written 9,246
Service and parts sales per customer repair order $294
Service and parts sales per warranty repair order $356
Number of technicians (including body shop) 16
Parts sales per service labor sale $1.58
Total parts inventory $394,113
Average customer mechanical labor rate $118
Source: NADA Data 2018: Midyear Report
Sales force
Dealerships' total service and parts sales, in billions of dollars, in the first half of 2018
Service labor sales   Parts sales
Customer mechanical $10.44   Wholesale $9.26
Warranty $4.92   Customer mechanical $9.02
Reconditioning $4.48   Warranty $6.22
Customer body $2.01   Reconditioning $3.14
Sublet to other repairers $1.90   Customer body $1.82
Other $2.02   Counter $1.48
Total $25.77   Other $3.52
      Total* $34.47
*Because of rounding, subtotals don't add up to total.
Source: NADA Data 2018: Midyear Report



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