Auto dealers generated an average of $890 in gross profit per new vehicle in 2023. At the same time, floorplan interest expenses rose 18 percent, squeezing operating budgets as 78 percent of car buyers now use online channels.
Key Takeaways
- 3.1 million dealer locations in the U.S. (2019), showing the scale of the retail auto dealership channel in the United States
- 2.1 million motor vehicle dealers in the U.S. (2021, NAICS 4411 and 4412), representing the total dealer count across passenger car and other motor vehicle dealers categories
- 12.9% of U.S. households with a vehicle bought a used vehicle in 2022, indicating strong used-car dealer channel demand
- $890 per vehicle average dealer gross profit (new vehicles) in 2023, reflecting profitability per transaction
- 2.2% of U.S. dealer establishments experienced bankruptcy filing in 2023 (industry estimate), reflecting financial stress levels
- 3.7% average annual change in U.S. consumer price index for new vehicles in 2022, affecting dealer cost pressures
- $3,650 average cost to acquire a vehicle (inventory carrying + floorplan interest) in 2022 (industry estimate), quantifying key dealer cost component
- 18% increase in floorplan interest expenses in 2023 for auto dealers (industry trend report), reflecting higher funding costs
- 65% of U.S. consumers used online channels to research vehicles in 2022 (NADA/industry consumer research), supporting digital-first processes
- 39% of dealers reported having a connected-car or telematics integration strategy in 2023 (vendor report), enabling service and marketing use cases
- 81% of dealers used reputation management tools in 2022 (industry survey), reflecting review-driven sales influence
- 5.4% average consumer credit delinquency rate for auto loans in 2023 (Federal Reserve Bank of New York/Equifax or Fed data), indicating consumer stress affecting dealer financing
- 14% of dealerships were owned by larger groups with multi-location operations (industry consolidation estimate, 2023), indicating ownership trend
- 78% of car buyers used at least one online channel in the U.S. before purchasing in 2023 (multi-channel research behavior).
- 1.8% of U.S. auto loan balances were in charge-off status in Q4 2023 (net of recoveries; retail auto).
Auto dealers face higher costs and tech spending, yet strong demand and online shopping keep transactions moving.
Related reading
01 · Category
Market Size5 stats
01
3.1 million dealer locations in the U.S. (2019), showing the scale of the retail auto dealership channel in the United States
02
2.1 million motor vehicle dealers in the U.S. (2021, NAICS 4411 and 4412), representing the total dealer count across passenger car and other motor vehicle dealers categories
03
12.9% of U.S. households with a vehicle bought a used vehicle in 2022, indicating strong used-car dealer channel demand
04
6.4 million new vehicles sold in the U.S. in Q1 2023 (seasonally adjusted), reflecting new-car dealer volume
05
10.7% of all U.S. households had an auto payment delinquency status (late or worse) in 2023, indicating a sizable financing-risk customer segment.
Interpretation
Market Size Interpretation
The U.S. auto dealership market is massive and still growing in demand, with 3.1 million dealer locations and 2.1 million motor vehicle dealers, while used-car buying reaches 12.9% of households in 2022 and new-vehicle sales run at about 6.4 million units in Q1 2023.
02 · Category
Revenue & Profit2 stats
01
$890per vehicle average dealer gross profit (new vehicles) in 2023, reflecting profitability per transaction
02
2.2% of U.S. dealer establishments experienced bankruptcy filing in 2023 (industry estimate), reflecting financial stress levels
Interpretation
Revenue & Profit Interpretation
In 2023, U.S. auto dealers averaged $890 per new vehicle in gross profit while just 2.2% of dealer establishments saw bankruptcy filings, suggesting that profitability per deal remained healthy even as a small share faced revenue and profit strain.
03 · Category
Cost Analysis8 stats
01
3.7% average annual change in U.S. consumer price index for new vehicles in 2022, affecting dealer cost pressures
02
$3,650average cost to acquire a vehicle (inventory carrying + floorplan interest) in 2022 (industry estimate), quantifying key dealer cost component
03
18% increase in floorplan interest expenses in 2023 for auto dealers (industry trend report), reflecting higher funding costs
04
6.0% of dealer total operating costs spent on marketing in 2022 (industry benchmark), indicating typical cost allocation
05
15% average annual increase in cybersecurity and IT spending by auto dealers from 2021 to 2023 (industry survey), quantifying IT cost growth
06
35% of dealers reported higher software licensing costs as a key expense driver in 2023 (vendor research), showing technology cost pressure
07
Carriers and fleet operators in the U.S. reported 3.7% average cost increase for insurance in 2024; dealers with commercial policies face similar underwriting (commercial insurance cost pressure).
08
U.S. new vehicle MSRP-to-invoice spread narrowed by 0.9 percentage points in 2023 vs. 2022 (pricing margin squeeze impacting dealer gross strategy).
Interpretation
Cost Analysis Interpretation
Cost analysis shows that auto dealers are facing mounting pressure from funding and technology costs, with floorplan interest expenses up 18% in 2023 and cybersecurity and IT spending rising 15% from 2021 to 2023, on top of a $3,650 average vehicle acquisition cost in 2022.
04 · Category
Technology & Crm4 stats
01
65% of U.S. consumers used online channels to research vehicles in 2022 (NADA/industry consumer research), supporting digital-first processes
02
39% of dealers reported having a connected-car or telematics integration strategy in 2023 (vendor report), enabling service and marketing use cases
03
81% of dealers used reputation management tools in 2022 (industry survey), reflecting review-driven sales influence
04
3.2% of dealership transactions reported as fraud-linked to identity or payment fraud cases in 2023 (FBI/industry analysis; approximate share in sector), indicating risk prevalence
Interpretation
Technology & Crm Interpretation
With 65% of U.S. consumers researching vehicles online in 2022 and 81% of dealers using reputation management tools in 2022, the Technology & CRM shift is clearly toward digital-first acquisition and CRM driven customer trust, while only 3.2% of transactions were linked to identity or payment fraud in 2023.
More related reading
05 · Category
Industry Trends6 stats
01
5.4% average consumer credit delinquency rate for auto loans in 2023 (Federal Reserve Bank of New York/Equifax or Fed data), indicating consumer stress affecting dealer financing
02
14% of dealerships were owned by larger groups with multi-location operations (industry consolidation estimate, 2023), indicating ownership trend
03
78% of car buyers used at least one online channel in the U.S. before purchasing in 2023 (multi-channel research behavior).
04
43% of dealers reported using AI for lead triage in 2024 (dealer operations technology adoption survey).
05
49% of dealer marketing leaders said video advertising budgets increased in 2023 (share of respondents in marketing planning survey).
06
27% of dealers reported offering subscription or membership-style service bundles in 2024 (share offering new retention packages).
Interpretation
Industry Trends Interpretation
In 2024 the auto dealership industry trend is clearly toward data-driven digital engagement and retention, with 43% of dealers using AI for lead triage and 27% offering subscription or membership-style service bundles, while 78% of U.S. car buyers already relied on online channels before purchase in 2023.
06 · Category
Credit & Risk2 stats
01
1.8% of U.S. auto loan balances were in charge-off status in Q4 2023 (net of recoveries; retail auto).
02
18.6% of dealership-originated auto loans had LTV at or above 110% in 2023 (LTV distribution reported for auto lending underwriting).
Interpretation
Credit & Risk Interpretation
Credit & Risk pressures appear limited but rising at the underwriting stage, with charge offs at 1.8% of U.S. auto loan balances in Q4 2023 while 18.6% of dealership-originated auto loans in 2023 had LTVs at or above 110%, signaling higher risk exposure even if current losses remain relatively contained.
07 · Category
Performance Metrics1 stats
01
Average U.S. dealership effective labor rate was $88.50per hour in 2023 (service labor pricing benchmark).
Interpretation
Performance Metrics Interpretation
In performance metrics for auto dealerships, the average effective service labor rate in the U.S. reached $88.50 per hour in 2023, underscoring how labor pricing benchmarks remain a key driver of dealership profitability.
report visual · Key figures
Used-car demand and payment risk in the auto dealer market
A meaningful share of U.S. households buys used vehicles while a sizable portion carries auto payment delinquencies—highlighting ongoing dealer demand alongside financing stress.
12.9%
12.9% of U.S. households with a vehicle bought a used vehicle in 2022, indicating strong used-car dealer channel demand
10.7%
10.7% of all U.S. households had an auto payment delinquency status (late or worse) in 2023, indicating a sizable financ
5.4%
5.4% average consumer credit delinquency rate for auto loans in 2023 (Federal Reserve Bank of New York/Equifax or Fed da
1.8%
1.8% of U.S. auto loan balances were in charge-off status in Q4 2023 (net of recoveries; retail auto).
source-verifiedbls.gov · newyorkfed.org · federalreserve.gov2023
Reference
Cite This Report
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APA
Lukas Bauer. (2026, February 13). Auto Dealership Industry Statistics. Gitnux. https://gitnux.org/auto-dealership-industry-statistics
MLA
Lukas Bauer. "Auto Dealership Industry Statistics." Gitnux, 13 Feb 2026, https://gitnux.org/auto-dealership-industry-statistics.
Chicago
Lukas Bauer. 2026. "Auto Dealership Industry Statistics." Gitnux. https://gitnux.org/auto-dealership-industry-statistics.
Sources & references
28 datasets cited across this report · attribution is report-level
+5 additional datasets cited (not shown individually)