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
- 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
- 88% of used vehicle shoppers used mobile devices during search process in 2023
- Average time to buy a new vehicle shortened to 52 days in 2023 from 64 days in 2022
- 41% of buyers considered electric vehicles in their 2023 purchase process, up from 33%
- Female buyers represented 52% of new vehicle purchases in U.S. 2023
- Loyalty rate for brand repurchase was 52% among new vehicle buyers in 2023
- 64% of consumers prioritized fuel efficiency in vehicle selection 2023
- Hispanic buyers grew to 20% of U.S. new vehicle market share in 2023
- Average vehicle trade-in value was $24,800 for used vehicles in 2023
- 55% of auto loans originated at dealerships had terms over 72 months in 2023
- 27% of buyers walked out of dealerships due to pricing in 2023 survey
- Gen Z (18-26) represented 22% of used vehicle buyers in 2023
- 76% of EV intenders cited charging infrastructure as top barrier 2023
- Average down payment on new vehicles was 10.3% or $4,950 in 2023
- 49% of luxury vehicle buyers were repeat customers in 2023
- Safety features influenced 82% of family vehicle purchases in 2023
- Online price quoting accepted by 91% of shoppers pre-visit in 2023
- Trade-in credit averaged 85% of KBB value at dealerships 2023
- 37% of buyers preferred contactless delivery options in 2023
Consumer 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
- U.S. auto dealerships employed 1.18 million people directly in 2023, generating $100 billion in payroll
- Sales positions accounted for 28% of total dealership workforce in 2023
- Technician wages averaged $28.50 per hour in U.S. dealerships 2023, up 5.5%
- Turnover rate in dealership sales staff was 42% in 2023
- 35% of dealership hires in 2023 were Gen Z workers under age 25
- Service advisors earned average annual salary of $72,000 in 2023
- Dealerships spent $2.1 billion on employee training in 2023
- Female representation in dealership employment reached 28% in 2023
- Parts department staff turnover was 31% in U.S. dealerships 2023
- Average dealership general manager salary was $285,000 in 2023
- Salespeople averaged 9.2 cars per month per rep in high-volume stores 2023
- Entry-level BDC agent salary averaged $48,000 plus commissions 2023
- 68% of technicians required upskilling for ADAS systems by 2023
- Diversity hiring initiatives boosted minority staff by 12% in 2023
- Remote work options available to 15% of non-frontline dealership jobs 2023
- Finance manager average earnings hit $165,000 in 2023
- Apprenticeship programs trained 25,000 new techs in 2023
- Unionization efforts affected 8% of dealership workforces in 2023
- Retention bonuses paid to 62% of sales teams in 2023
- Lot attendants hourly wage rose to $17.50 average in 2023
Employment 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
- 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
- F&I gross profit per vehicle hit a record $2,500 in 2023 for U.S. dealers
- Service and parts departments contributed 52% of total dealership gross profit in 2023
- Average new car dealership pretax profit was $1.84 million in 2023, up 22% YoY
- Used vehicle department gross margins averaged 12.4% in U.S. dealerships 2023
- Total advertising spend by U.S. dealerships reached $6.5 billion in 2023
- Dealership operating expenses rose 4.2% to $1.1 million per store monthly in 2023
- Finance and insurance revenue per dealership averaged $12.3 million in 2023
- Dealership net working capital averaged $4.2 million per store in 2023
- Parts department gross profit margin was 48% on average in 2023
- Total U.S. dealer service revenue hit $140 billion in 2023
- Fixed ops gross profit per technician reached $1.2 million annually 2023
- Average dealership floorplan interest expense was $850,000 in 2023
- Penetration rate for vehicle service contracts sold was 68% in 2023
- Dealership EBITDA margins averaged 8.5% for large groups in 2023
- Cybersecurity insurance costs for dealers rose 20% to $45,000 avg 2023
- GAP insurance sales generated $3.2 billion in revenue for dealers 2023
- Inventory carrying costs averaged 2.8% monthly for new vehicles 2023
Financial 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
- 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
- Toyota sold 1.72 million new vehicles in the U.S. in 2023, holding a 11.1% market share
- Ford's F-Series trucks led new vehicle sales with 750,789 units sold in 2023 in the U.S.
- New vehicle inventory at U.S. dealerships averaged 2.8 million units by end of 2023, up 60% from 2022 lows
- Average new vehicle transaction price in the U.S. fell to $48,000 in Q4 2023 from $48,700 peak
- Pickup trucks represented 20.2% of all new vehicle registrations in the U.S. in 2023
- SUV/Crossover sales made up 52.6% of U.S. new light-vehicle market in 2023
- Tesla Model Y was the top-selling new vehicle in the U.S. with 385,900 units in 2023
- In 2023, U.S. new light-vehicle sales reached 15.5 million units, a 12.4% increase YoY
- Chevrolet Silverado sold 543,300 units, securing second place in U.S. new sales 2023
- Hybrid vehicle sales surged 45% to 1.1 million units in U.S. 2023
- Luxury brand new sales totaled 760,000 units in U.S. 2023
- Incentives spending on new vehicles averaged $2,100 per unit in Q4 2023
- New vehicle affordability index fell to 140 in 2023, indicating strained buyer budgets
- Ram Pickup sales dropped 11% to 444,926 units in U.S. 2023
- Honda Accord sold 204,124 new units despite sedan decline in 2023
- Fleet sales represented 19% of total new vehicle volume in 2023
- Import vehicles held 52% share of U.S. new car sales in 2023
New 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
- 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
- Service absorption rate averaged 92% for top-performing dealerships in 2023
- Total U.S. dealership employees reached 1.2 million in 2023
- Online lead conversion rate for dealerships was 14.2% in 2023
- Average repair order value increased to $550 in 2023, up 6% YoY
- 62% of dealerships reported staffing shortages in sales roles in 2023
- EV service training covered 45% of technicians at dealerships in 2023
- Dealership website traffic grew 18% YoY to average 25,000 visits per month in 2023
- Customer pay repair orders increased 7% to 145 million in 2023
- Dealership CRM adoption rate hit 89% in U.S. stores by 2023
- Average showroom foot traffic recovered to 85% of pre-pandemic levels 2023
- Warranty repairs accounted for 42% of total service labor hours 2023
- Desking time per deal averaged 28 minutes digitally in 2023
- 54% of dealerships used AI for inventory management in 2023
- Collision repair backlog averaged 45 days at certified centers 2023
- Electric vehicle inventory turned 25% faster than gas models 2023
- Phone up rates for service appointments were 72% in 2023
- Multi-site dealer groups controlled 52% of new sales volume 2023
Operations 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
- 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
- Used vehicle sales volume increased 13% to 36.1 million units in U.S. in 2023
- Wholesale used vehicle prices dropped 7.2% in 2023, averaging $23,800 per unit
- Off-lease used vehicles supplied 2.2 million units to market in 2023
- Trade-ins accounted for 38% of used vehicle inventory at dealerships in 2023
- Used luxury vehicle sales grew 8% to 1.4 million units in U.S. 2023
- Average days to turn used inventory at U.S. dealerships was 43 days in Q4 2023
- 65% of used vehicle buyers in 2023 preferred SUVs/crossovers
- Used vehicle sales to millennials hit 14.2 million units in 2023
- Auction wholesale used volume was 6.8 million units in 2023, down 2%
- Retail used cars priced under $20,000 fell to 22% of inventory in 2023
- Jeep Wrangler led used SUV sales with 250,000 retail units in 2023
- Used EV sales reached 200,000 units in U.S. 2023, up 60% YoY
- Super Bowl used vehicle ads generated 15% higher leads for dealers in 2023
- Average used truck retail price was $32,400 in late 2023
- Franchise dealers sold 75% of all used vehicles retailed in 2023
- Online used sales direct-to-consumer grew 25% to 500,000 units 2023
- Used import brand vehicles captured 35% market share in 2023 sales
Used 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.
Sources & References
- Reference 1NADAnada.orgVisit source
- Reference 2COXAUTOINCcoxautoinc.comVisit source
- Reference 3STATISTAstatista.comVisit source
- Reference 4GOODCARBADCARgoodcarbadcar.netVisit source
- Reference 5AUTONEWSautonews.comVisit source
- Reference 6KBBkbb.comVisit source
- Reference 7EXPERIANexperian.comVisit source
- Reference 8MARKLINESmarklines.comVisit source
- Reference 9CLEANTECHNICAcleantechnica.comVisit source
- Reference 10JDPOWERjdpower.comVisit source
- Reference 11MANHEIMmanheim.comVisit source
- Reference 12SPGLOBALspglobal.comVisit source
- Reference 13VAUTOvauto.comVisit source
- Reference 14HUNTONhunton.comVisit source
- Reference 15AUTOTRADERautotrader.comVisit source
- Reference 16AUTOFINJOURNALautofinjournal.comVisit source
- Reference 17ADEXCHANGERadexchanger.comVisit source
- Reference 18DELOITTEdeloitte.comVisit source
- Reference 19ISEECARSiSeeCars.comVisit source
- Reference 20MCKINSEYmckinsey.comVisit source
- Reference 21DIGITALDEALERdigitaldealer.comVisit source
- Reference 22ASEase.netVisit source
- Reference 23DEALERMARKETSHAREdealermarketshare.comVisit source
- Reference 24RATCHETANDWRENCHratchetandwrench.comVisit source
- Reference 25SAEsae.orgVisit source
- Reference 26DEALERdealer.comVisit source
- Reference 27AUTOCAREautocare.orgVisit source
- Reference 28DEALERINSIDERdealerinsider.comVisit source
- Reference 29GLASSDOORglassdoor.comVisit source
- Reference 30AUTOTRAININGCENTREautotrainingcentre.comVisit source
- Reference 31WOMENINAUTOwomeninauto.comVisit source
- Reference 32COUNTERMANcounterman.comVisit source
- Reference 33CARPROcarpro.comVisit source
- Reference 34GREENCARREPORTSgreencarreports.comVisit source
- Reference 35LUXURYINSTITUTEluxuryinstitute.comVisit source
- Reference 36STELLANTISNORTHAMERICAstellantisnorthamerica.comVisit source
- Reference 37HONDANEWShondanews.comVisit source
- Reference 38WARDSAUTOwardsauto.comVisit source
- Reference 39ISEECARSiseecars.comVisit source
- Reference 40RECURRENTAUTOrecurrentauto.comVisit source
- Reference 41DEALERADVERTISERMAGdealeradvertisermag.comVisit source
- Reference 42CARVANAcarvana.comVisit source
- Reference 43POLKTPIpolktpi.comVisit source
- Reference 44BABCOXbabcox.comVisit source
- Reference 45AFTERMARKETMATTERSaftermarketmatters.comVisit source
- Reference 46STORELINKINCstorelinkinc.comVisit source
- Reference 47VSCASSOCIATIONvscassociation.comVisit source
- Reference 48ASBURYAUTOasburyauto.comVisit source
- Reference 49INSURANCENEWSNETinsurancenewsnet.comVisit source
- Reference 50ALLYally.comVisit source
- Reference 51BLACKBOOKblackbook.comVisit source
- Reference 52CARFAXcarfax.comVisit source
- Reference 53PWCpwc.comVisit source
- Reference 54EDMUNDSedmunds.comVisit source
- Reference 55LEXUSlexus.comVisit source
- Reference 56IIHSiihs.orgVisit source
- Reference 57TRUECARtruecar.comVisit source
- Reference 58APPRAISALENGINEappraisalengine.comVisit source
- Reference 59EPCGROUPepcgroup.netVisit source
- Reference 60ELEAD-CRMelead-crm.comVisit source
- Reference 61DEALERTRACKdealertrack.comVisit source
- Reference 62MOTORmotor.comVisit source
- Reference 63VIN SOLUTIONSvin solutionsVisit source
- Reference 64AUTOSWEETautosweet.comVisit source
- Reference 65CCI-CCAcci-cca.comVisit source
- Reference 66AUTOREMARKETINGautoremarketing.comVisit source
- Reference 67PHONE-NINJAphone-ninja.comVisit source
- Reference 68INDEEDindeed.comVisit source
- Reference 69FLEXJOBSflexjobs.comVisit source
- Reference 70ZIPRECRUITERziprecruiter.comVisit source
- Reference 71TECHFORCEFOUNDATIONtechforcefoundation.orgVisit source
- Reference 72LABORNOTESlabornotes.comVisit source
- Reference 73DEALERHRdealerhr.comVisit source
- Reference 74SALARYsalary.comVisit source