The combination of surging new and used vehicle sales, strong demand for financing and busy service departments helped auto dealers post their best year ever in 2014.
The National Automobile Dealers Association, which represents the 16,300 auto dealers in the U.S., said Friday that the average auto dealership boosted its net profit (before taxes) in 2014 by 6.7 percent, to $1.09 million. (Tweet This)
It's the fifth straight year dealers have increased net profits, though the profit margin of 2.2 percent remained unchanged compared to the prior year.
"Auto dealers are clearly doing much better than they were just a few years ago," said Steven Szakaly, chief economist at NADA. "But with a profit margin unchanged at 2.2 percent, it shows just how fierce the price competition is right now for new vehicles."
New vehicle sales rose to 16.4 million last year, the highest level since 2006, according to NADA. Meanwhile, used vehicle sales climbed above 41 million, an eight-year high.