Dealer sales volumes hit blip due to holiday but remain on positive trend

The Fourth of July holiday weekend led to lower than average parts and service volumes in the dealer space last week, but industry averages across June signify the market appears close to returning to normal seasonal levels, KEA Advisors reported Monday in its weekly dealer volume survey.

According to KEA Advisors, service volumes among its 81 dealer survey responders fell below 5,000 repair orders last week (Week 27 of the calendar year) for the first time since the week including Memorial Day. The previous four weeks had averaged more than 5,300 repair orders, including two weeks (Weeks 23 and 25) that had repair order totals in line with the weeks that occurred before the coronavirus arrived.

Regarding labor sales, KEA Advisors says Week 27 data shows an average of $332 per repair order last week. That was slightly below the $361 first reported for Week 26 — which was edited upward to $496 in this week’s report. KEA Advisors notes both numbers are likely to continue rising in the weeks ahead as more complicated repair orders are completed.

After averaging approximately $700 for labor sales during the first 12 weeks of the year, labor sales have re-established a normal range between $625 and $700 per week during most of the pandemic.

In the parts sector, KEA Advisor’s 79 dealer responders reported nearly 29,000 invoices for Week 27. That number was the lowest total thus far this year and more than 5,000 orders fewer than the Week 26.

Yet despite last week’s overall low invoice totals, KEA Advisors says daily invoice data was consistent with the previous five weeks, which indicates next week’s survey results are likely to show sales bounced back after the holiday. Numbers were down because businesses were closed, not because of a lack of customer activity.

Average total sales per parts invoice were stronger than normal in Week 27, clocking in at nearly $318. That was the highest total since Week 22, and among the five highest single weeks of the year.

For more information from KEA Advisor’s weekly volume indicator dealer surveys, please CLICK HERE.

Learn how to move your used trucks faster
With unsold used inventory depreciating at a rate of more than 2% monthly, efficient inventory turnover is a must for dealers. Download this eBook to access proven strategies for selling used trucks faster.
Used Truck Guide Cover