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Paint Protection Ranks No. 1 in Dealer Profits, Study Finds

Izmocars’ annual AOA Auto Accessories Trend Report revealed that dealerships continued to generate solid profits from accessory sales in 2011.

by Staff
February 14, 2012
2 min to read


LAS VEGAS — Izmocars’ annual AOA Auto Accessories Trend Report revealed that dealerships continued to generate solid profits from accessory sales in 2011.

The report analyzes accessories sales data from dealerships across the country and highlights the accessories that were most popular with consumers in 2011, the categories that had the most traction across different U.S. regions and the vehicle models that attracted the highest volume of accessories sales.

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“With improved new-car sales on the horizon, dealerships who have cracked the code of selling accessories are in a unique sweet spot for 2012,” said Sidney Haider, izmocars vice president. “And, as the economy has driven consumers to hold onto their vehicles for record lengths of time, dealers and OEMs should note a key trend that surfaces in this report: more and more car buyers are opting for protection products, reflecting an emerging new car buyer mindset focused on a longer vehicle life.”

Spurred by economic conditions, lengthening car ownership cycles and a year filled with extreme weather, protection and convenience accessories were the overall winners for 2011, with paint protection ranking No. 1 in dealer profits, knocking upholstery from its top spot for the previous year, according to the report. OE product sales remained strong throughout the year, gaining the No. 2 (Factory Exterior), No. 3 (Body Side Moldings) and No. 8 (Factory Interior) spots in volume of parts sold for the year.

‘Guard Thy Car’ was a theme in the breakdown of these categories, with consumers purchasing plenty of Mudguards, Splash Guards, Door Edge Guards, Bumper Protectors, Nose Masks and Door Sill Protectors, according to the report. By region, long-life vehicle trends and the weather made for a common theme, with protection dominating products sold.

Window Tints remained strong in the South, although the category did not make the Top 5 in other less sunny regions. Floor mats remained the most popular category across regions in 2011, ranking No. 1 in the Northeast and Western regions and placing in the top five in all other regions.

The 2012 AOA Auto Accessories Trend Report is based on complete year sales data from a diverse sampling of 150 dealerships who utilized AddOnAuto, according to izmocars. In aggregate, they sold $39 million in accessories in 2011. The average dealership analyzed generated more than $260,000 in annual sales of accessories to new-car buyers in 2011, in addition to pre-installed parts and options, with an average of more than $475 in accessories sales per vehicle sold, an average gross profit margin of 45 percent and an after-commission net profit margin of 32.3 percent.

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To view the full report, click here: http://www.izmocars.com/trend-reports/aoa-2012.pdf.

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