---

New Vehicle Sales Drive

15 September 1998

New Vehicle Sales Drive

                          Year-To-Date Dealer Sales

    WASHINGTON, Sept. 14 -- Through July, total year-to-date
sales for the average franchised new-vehicle dealership were up 7 percent from
the same period in 1997, according to the National Automobile Dealers
Association.
    NADA's Monthly Dealership Profile shows that the average sales total per
dealership was $12 million through the first seven months of the year, up from
$11.2 million during the same period last year.
    New vehicle sales have accounted for 58.9 percent of dealer revenue, up
from 57.8 percent through July in 1997. Used vehicle sales contributed 29.8
percent, down from 30.4 percent last year, and service and parts added 11.3
percent, down from 11.8 percent.
    Average dealership net profit before taxes so far this year is 1.9 percent
of sales, up from 1.7 percent through July of 1997.
    The average new-vehicle selling price through July rose 5.5 percent from a
year ago, to $23,482 as the strength of the luxury and sport utility vehicle
market continued. The average used-vehicle selling price at franchised new
vehicle dealerships is up 2.9 percent, to $12,442.
    Average total dealership expenditure on advertising was $114,422 through
July, up 4 percent from last year. Advertising spending per new vehicle
retailed was $418, down 4.6 percent from the same period in 1997.
    The National Automobile Dealers Association represents more than 19,600
franchised new-car and -truck dealers holding nearly 40,000 separate
franchises, domestic and import.