The average profitability of car dealerships in Spain decreased to 1.58% in 2023 from an “exceptional” 2.24% in the previous year, as supply bottlenecks gradually eased — but this still represented the second-highest figure of the past five years, according to a survey conducted by Snap On Business Solutions, El Correo reports. 

Growth was found to be strong in Q1 before moderating significantly during the remainder of the year as rising interest rates undermined demand. 

However, almost a fifth of dealers (19.6%) made a loss in 2023, up around 3.0 percentage points from 2022. 

New vehicle sales accounted for 65.2% of dealer turnover and 42.7% of their profits in 2023, while used vehicle sales accounted for 19.0% of turnover and 14.3% of profit. 

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