Dealers Rake In Record Profits

New-vehicle dealerships in the U.S. earned an average of $843,700 in 2012, up 6% year over year to an all-time high, Automotive News reports.

The newspaper cites an annual survey by the National Automobile Dealers Assn., which also showed that average revenue per dealership climbed 9% to $38.4 million. Return on sales was unchanged at 2%.

NADA notes that dealer income was bolstered by low interest rates, manufacturer-sponsored inventory financing and strong demand. American deliveries of new cars and light trucks jumped 13% to 14.5 million units in 2012.

Last year dealers derived 56% of their profit from new vehicle sales, 32% from used models and 12% from parts and service, according to NADA. It says dealerships spent an average $405,900 on advertising, up 11% from 2011.