Parts Wholesale Trends Report from PSXLink

Note: Data set features 1,600+ wholesale dealers.

When comparing weekly net sales from 2024 with 2023, dealership collision part net sales decreased by 2.0% for the Top 100 Performing Dealers. Across all collision wholesale dealers, there was a slightly larger 3.5% average decrease in weekly net collision part sales. While both groups experienced weekly average sales declines, the Top Performing dealers experienced a smaller drop, likely reflecting stronger dealer brand reputations or more active or established customer bases, softening the downturn in weekly net sales.

In 2024, return rates demonstrated marginal improvements, meaning dealers (and buyers) experienced fewer logistical headaches and lower return costs. For the Top 100 Performing Dealers, return rates dropped slightly from 15.85% to 15.40% (down 45 basis points). Across all dealers, return rates improved by 38 basis points. The all-dealer segment saw a 3.5% avg. decrease in weekly net collision sales.

Likely driven by rising parts costs, aggressive pricing, and expanded competition, Gross Profit Margins came under pressure in 2024 at both Top 100 Performing Dealers and all collision wholesale dealers. Gross profit margins were down 115 basis points for the Top 100 Performing Dealer segment and 117 basis points across all dealers respectively.

Note: Data set features 1,600+ wholesale dealers.

In 2024, the mechanical parts wholesale segment experienced a stronger performance compared to collision. The weekly net sales average demonstrated an upward trend, especially across the Top 100 Performing Dealer segment. The Top 100 Performing Dealers saw an average weekly increase of 4.3% (YoY) with sales climbing from $352K to $367K. At the same time, all dealers posted a 1.1% (YoY) average increase, growing from $64K to $65K weekly net sales. Top 100 Performing Dealers experienced a 4.3% average weekly increase in net sales.

Similar to the collision segment, return rates also improved in 2024 across mechanical parts wholesale dealers. The Top 100 Performing Dealers saw return rates drop from 13.58% to 12.92% (66 basis points). All dealers, on average, experienced a return rate decline from 12.98% to 12.77% (22 basis points). These lower return rates likely represent ongoing operational or inventory‐management improvements across the board.

In 2024, gross profit margins remained relatively stable compared to 2023, reflecting only a slight drop across both dealer segments. Top 100 Performing Dealers saw margins decline from 7.57% to 7.34% (dropping just 22 basis points). Across all dealers, gross profit margin dipped from 12.33% to 12.10% (32 basis points).

With mechanical parts showing stronger year-over-year growth, investing in more robust mechanical programs and incentives, such as deeper inventory insights, more efficient order management & response times, and customer loyalty & engagement campaigns could help drive even stronger results. Likewise, maintaining lower, or even further improving, return rates will optimise and protect profitability. The overall tightening of profit margins within both parts segments could improve through enhanced OEM-dealer partnerships to support pricing and supply chain efficiencies.

PSXLink, the OEC business intelligence solution, is designed to support wholesale parts dealers with insights that drive wholesale strategy and customer engagement. By leveraging DMS part sales data, PSXLink allows users to identify changing customer purchasing habits, track sales performance within targeted business segments, pinpoint growth opportunities, and more.