Despite setting a new revenue record of $1.2 trillion last year, the modern auto dealership’s real story lies hidden in a cascade of surprising numbers, from soaring EV interest to razor-thin profit margins.
Key Takeaways
- In 2023, U.S. franchised new-car dealerships generated $1.2 trillion in total gross revenue, marking a 12% increase from 2022.
- Light-duty truck sales accounted for 79.3% of new vehicle sales at franchised dealerships in 2023.
- Average new vehicle gross profit per unit at franchised dealerships rose to $3,115 in 2023, up 38% from 2022.
- Total U.S. new light-vehicle sales were 15.6 million units in 2023.
- Toyota sold 2.25 million new vehicles in the U.S. in 2023.
- Ford F-Series trucks sold 750,789 units in 2023, leading segment.
- New car inventory levels reached 2.8 million units by end of 2023.
- Average age of new vehicle inventory was 50 days in December 2023.
- Used vehicle inventory averaged 2.2 million units at retail in Q4 2023.
- 76% of consumers researched vehicles online before visiting dealership in 2023.
- 62% of buyers used mobile apps for vehicle shopping in 2023.
- Average time spent at dealership was 3.2 hours for new car purchases in 2023.
- Electric vehicle consideration rose to 35% among all buyers in 2023.
- U.S. auto dealership count was 18,183 franchised stores in 2023.
- EV market share reached 7.6% of new vehicle sales in 2023.
The U.S. auto dealership industry saw strong growth in sales and profits during 2023.
Customer Insights
176% of consumers researched vehicles online before visiting dealership in 2023.
Verified262% of buyers used mobile apps for vehicle shopping in 2023.
Verified3Average time spent at dealership was 3.2 hours for new car purchases in 2023.
Verified481% of used car buyers prioritized fuel economy in 2023 survey.
Directional5Loyalty rate for new vehicle buyers was 52% in 2023.
Single source645% of buyers financed 100% of vehicle cost in 2023.
Verified7Women accounted for 48% of new vehicle purchasers in 2023.
Verified8Millennials made up 38% of new car buyers in 2023.
Verified967% of EV intenders delayed purchase due to charging concerns in 2023.
Directional10Average down payment on new vehicles was 10% or $4,800 in 2023.
Single source1155% of buyers read online reviews before visiting dealership.
Verified12Gen Z buyers increased to 15% of total new sales in 2023.
Verified1373% preferred touchless buying processes post-pandemic.
Verified14Hispanic buyers grew to 22% of new vehicle market in 2023.
Directional1541% of buyers traded in older EV for new model in 2023.
Single source16Satisfaction with negotiation process scored 792/1000 in 2023 J.D. Power study.
Verified1764% of luxury buyers valued technology features highest.
Verified18Repeat purchase intent was 78% for satisfied CPO buyers.
Verified1950% of buyers under 35 prioritized autonomous features.
Directional20Average loan term for new vehicles reached 69 months in 2023.
Single source2182% of in-market shoppers started online in 2023 Cox study.
Verified22Price was top factor for 71% of used car shoppers.
VerifiedCustomer Insights Interpretation
The modern dealership experience is a curious blend of digital homework and analog endurance, where consumers arrive armed with online research and fuel economy spreadsheets only to spend hours negotiating a deal they'll mostly finance, all while the industry nervously eyes Gen Z's growing presence and everyone secretly wonders where to plug in these electric cars.
Employment and Workforce
1Average dealership employee count was 65 full-time equivalents in 2023.
Verified2Auto industry supported 9.5 million jobs directly and indirectly in 2022.
Verified3Technician shortage affected 70% of dealerships in 2023.
Verified4Average technician wage increased 8% to $75,000 annually in 2023.
Directional552% of dealerships reported hiring challenges for sales staff.
Single source6Women comprised 22% of auto dealership workforce in 2023.
Verified7Turnover rate for sales consultants was 42% in 2023.
Verified8Training hours per employee averaged 24 annually in 2023.
Verified965% of technicians were certified for EV repair in late 2023.
Directional10Dealership HR tech adoption rose to 60% for recruiting.
Single source11Average sales per employee was $1.8 million in 2023.
Verified12Service advisors turnover was 35% industry average.
Verified1340% of new hires required upskilling for digital tools.
Verified14Unionization efforts at non-union dealers increased 15%.
Directional15Diversity training implemented at 75% of large groups.
Single source16Remote work for admin staff reached 20% post-2023.
Verified17Wage growth for F&I managers was 10% YoY.
Verified1855% of dealerships offered mental health benefits in 2023.
Verified19Apprenticeship programs trained 12,000 new techs in 2023.
Directional20Sales staff commissions averaged 25% of gross profit.
Single sourceEmployment and Workforce Interpretation
The auto dealership industry, propped up by an army of 9.5 million, is a frantic high-wire act of paying people more to stay in a revolving door while frantically training new ones to plug the gaps in an increasingly complex and demanding circus.
Financial Performance
1In 2023, U.S. franchised new-car dealerships generated $1.2 trillion in total gross revenue, marking a 12% increase from 2022.
Verified2Light-duty truck sales accounted for 79.3% of new vehicle sales at franchised dealerships in 2023.
Verified3Average new vehicle gross profit per unit at franchised dealerships rose to $3,115 in 2023, up 38% from 2022.
Verified4Franchised dealerships' average net profit per new vehicle retailed increased to 5.8% in 2023 from 4.3% in 2022.
Directional5U.S. auto dealers sold 15.5 million new vehicles in 2023, a 12.4% increase year-over-year.
Single source6Service and parts departments at franchised dealerships generated $148 billion in revenue in 2023.
Verified7Average pretax profit margin for franchised new-car dealerships was 2.5% in 2023.
Verified8Used vehicle sales at franchised dealerships reached 18.4 million units in 2023.
Verified9Franchised dealerships employed 1.2 million people in 2023, paying $88 billion in wages.
Directional10Auto retail industry paid $100 billion in state and local taxes in 2022.
Single source11Franchised new-car dealers contributed $55.9 billion to U.S. GDP in 2021.
Verified12Independent dealerships sold 17.6 million used vehicles in 2022.
Verified13New-car dealers’ service/parts gross margins averaged 51% in 2022.
Verified14Average revenue per new-car dealership reached $1.3 billion in 2022.
Directional15U.S. auto dealers invested $32 billion in capital expenditures in 2022.
Single source16Franchised dealers’ average new-car inventory was 38 days’ supply in Q4 2023.
Verified17New vehicle affordability index fell to 127 in December 2023, down 8% from prior year.
Verified18Average new vehicle transaction price was $48,759 in December 2023.
Verified19Used vehicle gross profit per unit averaged $2,604 in Q4 2023.
Directional20Dealer service revenue grew 8% year-over-year in 2023.
Single source21F&I gross profit per new vehicle retailed was $2,498 in 2023.
Verified22Average dealership pretax profit per employee was $127,000 in 2023.
Verified23Parts department gross profit margin reached 46% in 2023.
Verified24New-car department expenses as % of gross profit were 87.9% in 2023.
Directional25Used-car department gross profit per unit was $2,337 in 2023.
Single sourceFinancial Performance Interpretation
Americans' insatiable appetite for expensive trucks and dealerships' masterful art of the add-on are masking the fact that, despite record revenue, this remains a brutal volume game where the real profit is in fixing what they sell.
Industry Trends
1Electric vehicle consideration rose to 35% among all buyers in 2023.
Verified2U.S. auto dealership count was 18,183 franchised stores in 2023.
Verified3EV market share reached 7.6% of new vehicle sales in 2023.
Verified4Autonomous vehicle tech adoption in fleets grew 25% in 2023.
Directional5Digital retailing penetration hit 40% of sales in 2023.
Single source6Supply chain disruptions reduced production by 10% in 2023.
Verified7Used-to-new sales ratio was 1.17:1 in 2023.
Verified8Dealer consolidation rate was 5% annually over past 5 years.
Verified9Service absorption rate averaged 92% for top dealerships in 2023.
Directional10Chip shortage resolved, boosting inventory 50% from 2022 lows.
Single source11Right-to-repair legislation impacted 30% of service revenue projections.
Verified12Online lead conversion rate improved to 18% in 2023.
Verified13Average dealership square footage increased 15% since 2019.
Verified14Subscription models for vehicles piloted at 10% of dealers.
Directional15Tariffs on Chinese EVs proposed, affecting 5% potential imports.
Single source16Dealer advertising spend rose 12% to digital channels in 2023.
Verified17Vehicle-to-everything (V2X) tech in 2% of new models 2023.
Verified18Franchise terminations dropped 40% from peak in 2023.
Verified19U.S. franchised new-car dealers numbered 16,850 in 2023.
Directional20Total auto retail establishments reached 107,000 in 2023.
Single sourceIndustry Trends Interpretation
The data shows an industry in frantic, simultaneous renovation, where nearly every aspect of the car business—from how we dream about EVs to how we fix them—is being fundamentally and chaotically rewired at once.
Inventory Management
1New car inventory levels reached 2.8 million units by end of 2023.
Verified2Average age of new vehicle inventory was 50 days in December 2023.
Verified3Used vehicle inventory averaged 2.2 million units at retail in Q4 2023.
Verified4Days' supply for used vehicles fell to 35 days in December 2023.
Directional568% of new vehicle inventory was 60 days old or less in Q4 2023.
Single source6Wholesale used vehicle prices declined 1.5% MoM in December 2023.
Verified7Average used retail listing price was $27,200 in December 2023.
Verified8New EV inventory days' supply was 74 days in Q4 2023.
Verified945% of dealerships reported inventory shortages for popular models in 2023.
Directional10Used truck inventory levels were 40 days' supply in late 2023.
Single source11Franchised dealers held 55% of total used vehicle inventory in 2023.
Verified12Average cost per new vehicle in inventory rose to $47,500 in 2023.
Verified13Off-lease vehicles returning to market increased 20% in 2023.
Verified14Certified Pre-Owned (CPO) inventory grew 10% to 1.9 million units in 2023.
Directional15Average mileage on used vehicles sold was 47,000 miles in 2023.
Single source16Luxury used vehicle inventory days' supply was 42 days in Q4 2023.
Verified1792% of new vehicles were allocated by manufacturers in 2023.
Verified18Used vehicle wholesale volume was 6.5 million units in 2023.
Verified19Subcompact SUV inventory averaged 65 days' supply in 2023.
Directional20Dealer consignments made up 25% of used inventory in 2023.
Single source21New midsize SUV inventory was at 55 days in December 2023.
Verified22Trade-ins accounted for 52% of used vehicle acquisitions in 2023.
VerifiedInventory Management Interpretation
The auto industry is precariously balanced: despite overflowing lots, dealer costs are climbing, used car prices are softening, and buyers are still finding some models frustratingly scarce.
Sales Volume
1Total U.S. new light-vehicle sales were 15.6 million units in 2023.
Verified2Toyota sold 2.25 million new vehicles in the U.S. in 2023.
Verified3Ford F-Series trucks sold 750,789 units in 2023, leading segment.
Verified4Electric vehicle sales reached 1.2 million units in U.S. in 2023, up 50%.
Directional5Pickup trucks accounted for 20% of total U.S. vehicle sales in 2023.
Single source6SUV/Crossover sales made up 52% of U.S. new vehicle market in 2023.
Verified7Used car sales totaled 36 million units in U.S. in 2023.
Verified8Tesla Model Y was best-selling vehicle with 385,900 units in 2023.
Verified9Ram Pickup sales were 444,926 units in 2023.
Directional10Chevrolet Silverado sold 543,319 units in 2023.
Single source11Honda CR-V sales reached 361,457 units in 2023.
Verified12New vehicle sales per dealership averaged 1,200 units annually in 2023.
Verified13Online vehicle sales represented 25% of total transactions in Q4 2023.
Verified1484% of new vehicle buyers used digital tools in shopping process in 2023.
Directional15Average days to turn new vehicle inventory was 58 days in 2023.
Single source16Used retail units sold per dealer store averaged 1,100 in 2023.
Verified17Luxury vehicle sales grew 15% to 2.8 million units in 2023.
Verified18Hybrid vehicle sales surged 50% to 1.1 million units in 2023.
Verified19Q1 2024 new vehicle sales hit 3.14 million units, up 5% YoY.
Directional20GMC Sierra sales were 295,737 units in 2023.
Single source21Toyota RAV4 sold 434,943 units in 2023.
Verified22Jeep Wrangler sales reached 194,807 units in 2023.
Verified23Nissan Rogue sales were 271,458 units in 2023.
Verified24Average new vehicle sales per capita in U.S. was 47 per 1,000 people in 2023.
Directional25New vehicle sales through auctions accounted for 15% of dealer acquisitions in 2023.
Single source2672% of used vehicles sold were under 5 years old in 2023.
VerifiedSales Volume Interpretation
Americans, fiercely loyal to their SUVs and pickups, are flirting with a greener future by the millions while simultaneously ensuring their driveways remain a monument to both electric ascendance and gas-powered tradition.
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