Auto shopping and dealership economics are being reshaped by a mix of financing, mobile behavior, and changing preferences. In 2023, 95% of vehicle buyers were influenced by online car shopping, while the average time to buy a new vehicle dropped to 52 days from 64 the year before. And behind those shifts, the industry is juggling tighter margins, EV adoption barriers, and a workforce that is turning over fast.
Key Takeaways
- 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. 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%
- 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
- 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. 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
In 2023, digital shopping and financing reshaped dealership sales, boosting EV interest and speeding purchase timelines.
Related reading
01 · Category
Consumer Trends21 stats
01
72% of new vehicle buyers financed their purchase in 2023, with average loan amount $39,500
02
Online car shopping influenced 95% of vehicle buyers' decisions in 2023
03
Millennial buyers (ages 27-42) accounted for 46% of new vehicle sales in 2023
04
88% of used vehicle shoppers used mobile devices during search process in 2023
05
Average time to buy a new vehicle shortened to 52 days in 2023 from 64 days in 2022
06
41% of buyers considered electric vehicles in their 2023 purchase process, up from 33%
07
Female buyers represented 52% of new vehicle purchases in U.S. 2023
08
Loyalty rate for brand repurchase was 52% among new vehicle buyers in 2023
09
64% of consumers prioritized fuel efficiency in vehicle selection 2023
10
Hispanic buyers grew to 20% of U.S. new vehicle market share in 2023
11
Average vehicle trade-in value was $24,800for used vehicles in 2023
12
55% of auto loans originated at dealerships had terms over 72 months in 2023
13
27% of buyers walked out of dealerships due to pricing in 2023 survey
14
Gen Z (18-26) represented 22% of used vehicle buyers in 2023
15
76% of EV intenders cited charging infrastructure as top barrier 2023
16
Average down payment on new vehicles was 10.3% or $4,950 in 2023
17
49% of luxury vehicle buyers were repeat customers in 2023
18
Safety features influenced 82% of family vehicle purchases in 2023
19
Online price quoting accepted by 91% of shoppers pre-visit in 2023
20
Trade-in credit averaged 85% of KBB value at dealerships 2023
21
37% of buyers preferred contactless delivery options in 2023
Interpretation
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.
02 · Category
Employment20 stats
01
U.S. auto dealerships employed 1.18 million people directly in 2023, generating $100 billion in payroll
02
Sales positions accounted for 28% of total dealership workforce in 2023
03
Technician wages averaged $28.50per hour in U.S. dealerships 2023, up 5.5%
04
Turnover rate in dealership sales staff was 42% in 2023
05
35% of dealership hires in 2023 were Gen Z workers under age 25
06
Service advisors earned average annual salary of $72,000in 2023
07
Dealerships spent $2.1 billion on employee training in 2023
08
Female representation in dealership employment reached 28% in 2023
09
Parts department staff turnover was 31% in U.S. dealerships 2023
10
Average dealership general manager salary was $285,000in 2023
11
Salespeople averaged 9.2 cars per month per rep in high-volume stores 2023
12
Entry-level BDC agent salary averaged $48,000plus commissions 2023
13
68% of technicians required upskilling for ADAS systems by 2023
14
Diversity hiring initiatives boosted minority staff by 12% in 2023
15
Remote work options available to 15% of non-frontline dealership jobs 2023
16
Finance manager average earnings hit $165,000in 2023
17
Apprenticeship programs trained 25,000 new techs in 2023
18
Unionization efforts affected 8% of dealership workforces in 2023
19
Retention bonuses paid to 62% of sales teams in 2023
20
Lot attendants hourly wage rose to $17.50average in 2023
Interpretation
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.
03 · Category
Financial Performance20 stats
01
U.S. auto dealerships generated $1.2 trillion in total revenue in 2023
02
Average dealership gross profit per new vehicle retailed was $2,200in 2023
03
Net profit margin for U.S. franchised dealerships averaged 2.1% in 2023
04
F&I gross profit per vehicle hit a record $2,500in 2023 for U.S. dealers
05
Service and parts departments contributed 52% of total dealership gross profit in 2023
06
Average new car dealership pretax profit was $1.84 million in 2023, up 22% YoY
07
Used vehicle department gross margins averaged 12.4% in U.S. dealerships 2023
08
Total advertising spend by U.S. dealerships reached $6.5 billion in 2023
09
Dealership operating expenses rose 4.2% to $1.1 million per store monthly in 2023
10
Finance and insurance revenue per dealership averaged $12.3 million in 2023
11
Dealership net working capital averaged $4.2 million per store in 2023
12
Parts department gross profit margin was 48% on average in 2023
13
Total U.S. dealer service revenue hit $140 billion in 2023
14
Fixed ops gross profit per technician reached $1.2 million annually 2023
15
Average dealership floorplan interest expense was $850,000in 2023
16
Penetration rate for vehicle service contracts sold was 68% in 2023
17
Dealership EBITDA margins averaged 8.5% for large groups in 2023
18
Cybersecurity insurance costs for dealers rose 20% to $45,000 avg 2023
19
GAP insurance sales generated $3.2 billion in revenue for dealers 2023
20
Inventory carrying costs averaged 2.8% monthly for new vehicles 2023
Interpretation
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.
More related reading
04 · Category
New Vehicle Sales20 stats
01
In 2023, U.S. new light-vehicle sales reached 15.5 million units, marking a 12.4% increase from 2022
02
Light trucks accounted for 79.8% of total new vehicle sales in the U.S. in 2023, surpassing sedans significantly
03
Electric vehicle sales in the U.S. grew by 49% year-over-year in 2023, totaling 1.18 million units
04
Toyota sold 1.72 million new vehicles in the U.S. in 2023, holding a 11.1% market share
05
Ford's F-Series trucks led new vehicle sales with 750,789 units sold in 2023 in the U.S.
06
New vehicle inventory at U.S. dealerships averaged 2.8 million units by end of 2023, up 60% from 2022 lows
07
Average new vehicle transaction price in the U.S. fell to $48,000in Q4 2023 from $48,700 peak
08
Pickup trucks represented 20.2% of all new vehicle registrations in the U.S. in 2023
09
SUV/Crossover sales made up 52.6% of U.S. new light-vehicle market in 2023
10
Tesla Model Y was the top-selling new vehicle in the U.S. with 385,900 units in 2023
11
In 2023, U.S. new light-vehicle sales reached 15.5 million units, a 12.4% increase YoY
12
Chevrolet Silverado sold 543,300 units, securing second place in U.S. new sales 2023
13
Hybrid vehicle sales surged 45% to 1.1 million units in U.S. 2023
14
Luxury brand new sales totaled 760,000 units in U.S. 2023
15
Incentives spending on new vehicles averaged $2,100per unit in Q4 2023
16
New vehicle affordability index fell to 140 in 2023, indicating strained buyer budgets
17
Ram Pickup sales dropped 11% to 444,926 units in U.S. 2023
18
Honda Accord sold 204,124 new units despite sedan decline in 2023
19
Fleet sales represented 19% of total new vehicle volume in 2023
20
Import vehicles held 52% share of U.S. new car sales in 2023
Interpretation
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.
05 · Category
Operations20 stats
01
U.S. franchised dealerships numbered 16,991 in 2023, down 1% from prior year
02
Average new vehicle inventory days' supply was 68 days in December 2023
03
78% of dealerships invested in digital retailing tools in 2023
04
Service absorption rate averaged 92% for top-performing dealerships in 2023
05
Total U.S. dealership employees reached 1.2 million in 2023
06
Online lead conversion rate for dealerships was 14.2% in 2023
07
Average repair order value increased to $550in 2023, up 6% YoY
08
62% of dealerships reported staffing shortages in sales roles in 2023
09
EV service training covered 45% of technicians at dealerships in 2023
10
Dealership website traffic grew 18% YoY to average 25,000 visits per month in 2023
11
Customer pay repair orders increased 7% to 145 million in 2023
12
Dealership CRM adoption rate hit 89% in U.S. stores by 2023
13
Average showroom foot traffic recovered to 85% of pre-pandemic levels 2023
14
Warranty repairs accounted for 42% of total service labor hours 2023
15
Desking time per deal averaged 28 minutes digitally in 2023
16
54% of dealerships used AI for inventory management in 2023
17
Collision repair backlog averaged 45 days at certified centers 2023
18
Electric vehicle inventory turned 25% faster than gas models 2023
19
Phone up rates for service appointments were 72% in 2023
20
Multi-site dealer groups controlled 52% of new sales volume 2023
Interpretation
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.
06 · Category
Used Vehicle Sales20 stats
01
U.S. dealerships retailed 7.9 million used vehicles under 10 years old in 2023
02
Certified pre-owned (CPO) vehicle sales hit 1.9 million units in 2023, up 5% from prior year
03
Average used vehicle retail price in U.S. was $27,300in December 2023, down 2.5% YoY
04
Used vehicle sales volume increased 13% to 36.1 million units in U.S. in 2023
05
Wholesale used vehicle prices dropped 7.2% in 2023, averaging $23,800 per unit
06
Off-lease used vehicles supplied 2.2 million units to market in 2023
07
Trade-ins accounted for 38% of used vehicle inventory at dealerships in 2023
08
Used luxury vehicle sales grew 8% to 1.4 million units in U.S. 2023
09
Average days to turn used inventory at U.S. dealerships was 43 days in Q4 2023
10
65% of used vehicle buyers in 2023 preferred SUVs/crossovers
11
Used vehicle sales to millennials hit 14.2 million units in 2023
12
Auction wholesale used volume was 6.8 million units in 2023, down 2%
13
Retail used cars priced under $20,000fell to 22% of inventory in 2023
14
Jeep Wrangler led used SUV sales with 250,000 retail units in 2023
15
Used EV sales reached 200,000 units in U.S. 2023, up 60% YoY
16
Super Bowl used vehicle ads generated 15% higher leads for dealers in 2023
17
Average used truck retail price was $32,400in late 2023
18
Franchise dealers sold 75% of all used vehicles retailed in 2023
19
Online used sales direct-to-consumer grew 25% to 500,000 units 2023
20
Used import brand vehicles captured 35% market share in 2023 sales
Interpretation
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.
Reference
Cite This Report
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APA
Nathan Caldwell. (2026, February 13). Automotive Dealership Industry Statistics. Gitnux. https://gitnux.org/automotive-dealership-industry-statistics
MLA
Nathan Caldwell. "Automotive Dealership Industry Statistics." Gitnux, 13 Feb 2026, https://gitnux.org/automotive-dealership-industry-statistics.
Chicago
Nathan Caldwell. 2026. "Automotive Dealership Industry Statistics." Gitnux. https://gitnux.org/automotive-dealership-industry-statistics.
Sources & references
74 datasets cited across this report
+1 additional datasets cited (not shown individually)