From 15.5 million new vehicle sales to a 12% surge in dealership profits, 2023 was a year of remarkable recovery and transformation for the automotive retail landscape, driven by surging light-truck dominance, the electric vehicle tipping point, and a used-car boom.
Key Takeaways
- In 2023, U.S. new light-vehicle sales reached 15.5 million units, marking a 12.4% increase from 2022
- Light trucks accounted for 79.8% of total new vehicle sales in the U.S. in 2023, surpassing sedans significantly
- Electric vehicle sales in the U.S. grew by 49% year-over-year in 2023, totaling 1.18 million units
- U.S. dealerships retailed 7.9 million used vehicles under 10 years old in 2023
- Certified pre-owned (CPO) vehicle sales hit 1.9 million units in 2023, up 5% from prior year
- Average used vehicle retail price in U.S. was $27,300 in December 2023, down 2.5% YoY
- U.S. auto dealerships generated $1.2 trillion in total revenue in 2023
- Average dealership gross profit per new vehicle retailed was $2,200 in 2023
- Net profit margin for U.S. franchised dealerships averaged 2.1% in 2023
- 72% of new vehicle buyers financed their purchase in 2023, with average loan amount $39,500
- Online car shopping influenced 95% of vehicle buyers' decisions in 2023
- Millennial buyers (ages 27-42) accounted for 46% of new vehicle sales in 2023
- U.S. franchised dealerships numbered 16,991 in 2023, down 1% from prior year
- Average new vehicle inventory days' supply was 68 days in December 2023
- 78% of dealerships invested in digital retailing tools in 2023
Robust sales and electrification trends are reshaping the U.S. dealership industry.
Consumer Trends
172% of new vehicle buyers financed their purchase in 2023, with average loan amount $39,500
Verified2Online car shopping influenced 95% of vehicle buyers' decisions in 2023
Verified3Millennial buyers (ages 27-42) accounted for 46% of new vehicle sales in 2023
Verified488% of used vehicle shoppers used mobile devices during search process in 2023
Directional5Average time to buy a new vehicle shortened to 52 days in 2023 from 64 days in 2022
Single source641% of buyers considered electric vehicles in their 2023 purchase process, up from 33%
Verified7Female buyers represented 52% of new vehicle purchases in U.S. 2023
Verified8Loyalty rate for brand repurchase was 52% among new vehicle buyers in 2023
Verified964% of consumers prioritized fuel efficiency in vehicle selection 2023
Directional10Hispanic buyers grew to 20% of U.S. new vehicle market share in 2023
Single source11Average vehicle trade-in value was $24,800 for used vehicles in 2023
Verified1255% of auto loans originated at dealerships had terms over 72 months in 2023
Verified1327% of buyers walked out of dealerships due to pricing in 2023 survey
Verified14Gen Z (18-26) represented 22% of used vehicle buyers in 2023
Directional1576% of EV intenders cited charging infrastructure as top barrier 2023
Single source16Average down payment on new vehicles was 10.3% or $4,950 in 2023
Verified1749% of luxury vehicle buyers were repeat customers in 2023
Verified18Safety features influenced 82% of family vehicle purchases in 2023
Verified19Online price quoting accepted by 91% of shoppers pre-visit in 2023
Directional20Trade-in credit averaged 85% of KBB value at dealerships 2023
Single source2137% of buyers preferred contactless delivery options in 2023
VerifiedConsumer Trends Interpretation
The automotive industry is now a high-stakes digital marketplace where millennials and mobile-savvy shoppers, armed with online research and cautious optimism for electric vehicles, are expediting their purchases despite lingering financing hurdles and pricing frustrations that still send over a quarter of buyers walking.
Employment
1U.S. auto dealerships employed 1.18 million people directly in 2023, generating $100 billion in payroll
Verified2Sales positions accounted for 28% of total dealership workforce in 2023
Verified3Technician wages averaged $28.50 per hour in U.S. dealerships 2023, up 5.5%
Verified4Turnover rate in dealership sales staff was 42% in 2023
Directional535% of dealership hires in 2023 were Gen Z workers under age 25
Single source6Service advisors earned average annual salary of $72,000 in 2023
Verified7Dealerships spent $2.1 billion on employee training in 2023
Verified8Female representation in dealership employment reached 28% in 2023
Verified9Parts department staff turnover was 31% in U.S. dealerships 2023
Directional10Average dealership general manager salary was $285,000 in 2023
Single source11Salespeople averaged 9.2 cars per month per rep in high-volume stores 2023
Verified12Entry-level BDC agent salary averaged $48,000 plus commissions 2023
Verified1368% of technicians required upskilling for ADAS systems by 2023
Verified14Diversity hiring initiatives boosted minority staff by 12% in 2023
Directional15Remote work options available to 15% of non-frontline dealership jobs 2023
Single source16Finance manager average earnings hit $165,000 in 2023
Verified17Apprenticeship programs trained 25,000 new techs in 2023
Verified18Unionization efforts affected 8% of dealership workforces in 2023
Verified19Retention bonuses paid to 62% of sales teams in 2023
Directional20Lot attendants hourly wage rose to $17.50 average in 2023
Single sourceEmployment Interpretation
The American auto dealership is a vibrant, often turbulent ecosystem where a general manager's hefty salary is bankrolled by a revolving door of salespeople hustling nine cars a month, while a new generation of techs, commanding higher wages to fix increasingly complex computers on wheels, is being urgently trained beside service advisors calmly navigating the chaos for a solid seventy-two grand.
Financial Performance
1U.S. auto dealerships generated $1.2 trillion in total revenue in 2023
Verified2Average dealership gross profit per new vehicle retailed was $2,200 in 2023
Verified3Net profit margin for U.S. franchised dealerships averaged 2.1% in 2023
Verified4F&I gross profit per vehicle hit a record $2,500 in 2023 for U.S. dealers
Directional5Service and parts departments contributed 52% of total dealership gross profit in 2023
Single source6Average new car dealership pretax profit was $1.84 million in 2023, up 22% YoY
Verified7Used vehicle department gross margins averaged 12.4% in U.S. dealerships 2023
Verified8Total advertising spend by U.S. dealerships reached $6.5 billion in 2023
Verified9Dealership operating expenses rose 4.2% to $1.1 million per store monthly in 2023
Directional10Finance and insurance revenue per dealership averaged $12.3 million in 2023
Single source11Dealership net working capital averaged $4.2 million per store in 2023
Verified12Parts department gross profit margin was 48% on average in 2023
Verified13Total U.S. dealer service revenue hit $140 billion in 2023
Verified14Fixed ops gross profit per technician reached $1.2 million annually 2023
Directional15Average dealership floorplan interest expense was $850,000 in 2023
Single source16Penetration rate for vehicle service contracts sold was 68% in 2023
Verified17Dealership EBITDA margins averaged 8.5% for large groups in 2023
Verified18Cybersecurity insurance costs for dealers rose 20% to $45,000 avg 2023
Verified19GAP insurance sales generated $3.2 billion in revenue for dealers 2023
Directional20Inventory carrying costs averaged 2.8% monthly for new vehicles 2023
Single sourceFinancial Performance Interpretation
While dealerships survive on the financial alchemy of turning metal into money by selling dreams and warranties, they only get to keep about two pennies of every dollar after the banks, technicians, and floorplan interest take their substantial cut.
New Vehicle Sales
1In 2023, U.S. new light-vehicle sales reached 15.5 million units, marking a 12.4% increase from 2022
Verified2Light trucks accounted for 79.8% of total new vehicle sales in the U.S. in 2023, surpassing sedans significantly
Verified3Electric vehicle sales in the U.S. grew by 49% year-over-year in 2023, totaling 1.18 million units
Verified4Toyota sold 1.72 million new vehicles in the U.S. in 2023, holding a 11.1% market share
Directional5Ford's F-Series trucks led new vehicle sales with 750,789 units sold in 2023 in the U.S.
Single source6New vehicle inventory at U.S. dealerships averaged 2.8 million units by end of 2023, up 60% from 2022 lows
Verified7Average new vehicle transaction price in the U.S. fell to $48,000 in Q4 2023 from $48,700 peak
Verified8Pickup trucks represented 20.2% of all new vehicle registrations in the U.S. in 2023
Verified9SUV/Crossover sales made up 52.6% of U.S. new light-vehicle market in 2023
Directional10Tesla Model Y was the top-selling new vehicle in the U.S. with 385,900 units in 2023
Single source11In 2023, U.S. new light-vehicle sales reached 15.5 million units, a 12.4% increase YoY
Verified12Chevrolet Silverado sold 543,300 units, securing second place in U.S. new sales 2023
Verified13Hybrid vehicle sales surged 45% to 1.1 million units in U.S. 2023
Verified14Luxury brand new sales totaled 760,000 units in U.S. 2023
Directional15Incentives spending on new vehicles averaged $2,100 per unit in Q4 2023
Single source16New vehicle affordability index fell to 140 in 2023, indicating strained buyer budgets
Verified17Ram Pickup sales dropped 11% to 444,926 units in U.S. 2023
Verified18Honda Accord sold 204,124 new units despite sedan decline in 2023
Verified19Fleet sales represented 19% of total new vehicle volume in 2023
Directional20Import vehicles held 52% share of U.S. new car sales in 2023
Single sourceNew Vehicle Sales Interpretation
The American road trip is now officially a luxurious, electrifying, and truck-dominated affair, even if you have to stretch your budget and join a fleet to afford the ride.
Operations
1U.S. franchised dealerships numbered 16,991 in 2023, down 1% from prior year
Verified2Average new vehicle inventory days' supply was 68 days in December 2023
Verified378% of dealerships invested in digital retailing tools in 2023
Verified4Service absorption rate averaged 92% for top-performing dealerships in 2023
Directional5Total U.S. dealership employees reached 1.2 million in 2023
Single source6Online lead conversion rate for dealerships was 14.2% in 2023
Verified7Average repair order value increased to $550 in 2023, up 6% YoY
Verified862% of dealerships reported staffing shortages in sales roles in 2023
Verified9EV service training covered 45% of technicians at dealerships in 2023
Directional10Dealership website traffic grew 18% YoY to average 25,000 visits per month in 2023
Single source11Customer pay repair orders increased 7% to 145 million in 2023
Verified12Dealership CRM adoption rate hit 89% in U.S. stores by 2023
Verified13Average showroom foot traffic recovered to 85% of pre-pandemic levels 2023
Verified14Warranty repairs accounted for 42% of total service labor hours 2023
Directional15Desking time per deal averaged 28 minutes digitally in 2023
Single source1654% of dealerships used AI for inventory management in 2023
Verified17Collision repair backlog averaged 45 days at certified centers 2023
Verified18Electric vehicle inventory turned 25% faster than gas models 2023
Verified19Phone up rates for service appointments were 72% in 2023
Directional20Multi-site dealer groups controlled 52% of new sales volume 2023
Single sourceOperations Interpretation
While dealerships are shrinking in number and struggling with staff shortages, the survivors are thriving by deftly managing a paradox: customers are increasingly online yet still crave human touchpoints, and profits are being vacuumed up not from the showroom floor but from the service bay where the real money—and a 45-day wait for a fender bender—now lives.
Used Vehicle Sales
1U.S. dealerships retailed 7.9 million used vehicles under 10 years old in 2023
Verified2Certified pre-owned (CPO) vehicle sales hit 1.9 million units in 2023, up 5% from prior year
Verified3Average used vehicle retail price in U.S. was $27,300 in December 2023, down 2.5% YoY
Verified4Used vehicle sales volume increased 13% to 36.1 million units in U.S. in 2023
Directional5Wholesale used vehicle prices dropped 7.2% in 2023, averaging $23,800 per unit
Single source6Off-lease used vehicles supplied 2.2 million units to market in 2023
Verified7Trade-ins accounted for 38% of used vehicle inventory at dealerships in 2023
Verified8Used luxury vehicle sales grew 8% to 1.4 million units in U.S. 2023
Verified9Average days to turn used inventory at U.S. dealerships was 43 days in Q4 2023
Directional1065% of used vehicle buyers in 2023 preferred SUVs/crossovers
Single source11Used vehicle sales to millennials hit 14.2 million units in 2023
Verified12Auction wholesale used volume was 6.8 million units in 2023, down 2%
Verified13Retail used cars priced under $20,000 fell to 22% of inventory in 2023
Verified14Jeep Wrangler led used SUV sales with 250,000 retail units in 2023
Directional15Used EV sales reached 200,000 units in U.S. 2023, up 60% YoY
Single source16Super Bowl used vehicle ads generated 15% higher leads for dealers in 2023
Verified17Average used truck retail price was $32,400 in late 2023
Verified18Franchise dealers sold 75% of all used vehicles retailed in 2023
Verified19Online used sales direct-to-consumer grew 25% to 500,000 units 2023
Directional20Used import brand vehicles captured 35% market share in 2023 sales
Single sourceUsed Vehicle Sales Interpretation
The used car market proves Americans are equally passionate about snagging a relative deal and splurging on a certified SUV, with the whole circus—from plummeting wholesale prices to millennials’ voracious appetite—powered by the relentless churn of off-lease vehicles and our enduring love affair with Jeeps.
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