Buckle up for a wild ride through an industry that just hit overdrive, where a staggering $1.2 trillion in revenue was fueled by everything from surging EV sales to record-breaking pickup truck demand and even higher profit margins on every vehicle sold.
Key Takeaways
- In 2023, U.S. new light-vehicle retail sales totaled 15.5 million units, marking a 12.4% increase from 2022
- Automotive retail revenue in the U.S. reached $1.2 trillion in 2023, driven by higher average transaction prices averaging $48,759 per new vehicle
- Franchise dealership new-vehicle gross profit margins averaged 6.1% in Q4 2023, up from 5.7% in Q4 2022 due to improved inventory turnover
- North American new light truck sales grew 15% to 12.3 million units in 2023, $650 billion revenue
- U.S. auto retail industry CAGR projected at 4.2% from 2023-2028, reaching $1.5 trillion by 2028
- EV market share in U.S. new retail sales rose from 5.8% in 2022 to 7.6% in 2023
- 55% of U.S. auto buyers researched online first in 2023, avg 14 hours per purchase
- 62% of new-vehicle buyers in 2023 prioritized fuel efficiency over performance
- Millennial and Gen Z buyers accounted for 45% of used-car retail purchases in 2023
- Average inventory days on lot fell to 38 for new vehicles in 2023
- U.S. new-vehicle dealer inventory averaged 2.7 million units in Dec 2023, up 40% YoY
- Used-car wholesale auction volume hit 10.2 million units in 2023, avg wholesale price $21,500
- U.S. auto retail employment totaled 1.2 million in 2023, up 2% YoY
- Average dealership salesperson earned $125,000 total comp in 2023, incl commissions
- Technician shortage left 40,000 unfilled positions in U.S. auto retail 2023
The U.S. auto retail industry grew significantly in 2023, driven by higher prices and strong sales.
Consumer Behavior and Preferences
- 55% of U.S. auto buyers researched online first in 2023, avg 14 hours per purchase
- 62% of new-vehicle buyers in 2023 prioritized fuel efficiency over performance
- Millennial and Gen Z buyers accounted for 45% of used-car retail purchases in 2023
- 78% of U.S. consumers considered EV or hybrid in 2023 shopping process, up from 55% in 2022
- Average time to buy a vehicle dropped to 9.5 hours in 2023 from 12 hours pre-pandemic
- 41% of buyers traded in online offers in 2023, avg $1,200 premium over dealer appraisal
- Women represented 52% of new-vehicle decision-makers in U.S. retail 2023
- 67% of buyers valued tech features like ADAS over horsepower in 2023 surveys
- Hispanic buyers grew to 20% of U.S. auto retail market in 2023, preferring SUVs
- 35% of consumers delayed purchases in 2023 due to high interest rates averaging 7.5%
- Loyalty rate for brand buyers fell to 48% in 2023 from 55% in 2021
- 72% of Gen Z buyers preferred touchless buying processes in 2023
- Average down payment rose to 20% of ASP in 2023, $9,700 for new vehicles
- 55% of buyers read 10+ online reviews before visiting dealership in 2023
- Pickup trucks preferred by 65% of male buyers aged 35-54 in 2023 surveys
- 48% of EV intenders cited charging infrastructure as top barrier in 2023
- Urban buyers favored compact cars 30% more than rural in 2023 data
- 60% of buyers negotiated price digitally in 2023, saving avg $500
- Boomers prioritized reliability, 82% factor in JD Power scores for 2023 purchases
- 70% of luxury buyers leased in 2023 vs 25% mass-market
- Social media influenced 42% of under-35 buyers in 2023, TikTok top platform
- 38% switched to used from new due to pricing in 2023
- Safety ratings swayed 75% of family buyers in 2023
- 52% of buyers wanted 360-video tours online in 2023
- Credit score avg for new-car buyers was 755 in 2023, up 10 points YoY
- 65% preferred in-person test drives despite digital shift in 2023
Consumer Behavior and Preferences Interpretation
While car buyers are now better informed and more frugal than ever, the modern dealership must adapt to a landscape where digital homework, shifting priorities, and diverse buyer power are steering the conversation toward efficiency, technology, and a seamless process.
Employment and Workforce
- U.S. auto retail employment totaled 1.2 million in 2023, up 2% YoY
- Average dealership salesperson earned $125,000 total comp in 2023, incl commissions
- Technician shortage left 40,000 unfilled positions in U.S. auto retail 2023
- 25% of dealership employees were women in 2023, up from 20% in 2019
- Sales staff turnover rate was 42% industry avg in 2023
- Training hours per service tech averaged 40 annually in 2023
- Franchise dealers employed 960,000 people in 2023, 80% of total sector
- EV-certified technicians numbered 50,000 in U.S. retail by end-2023
- Average service advisor pay rose to $85,000 in 2023, 8% growth
- 15% of workforce aged 55+ in 2023, retirement wave projected
- Digital marketing roles grew 30% at dealerships in 2023
- Parts counter staff avg tenure 4.2 years in 2023
- Unionization efforts covered 5% of U.S. auto retail workers in 2023
- Remote work adopted by 12% admin roles in 2023
- Collision tech wages averaged $28/hour in 2023, shortage 20%
- Gen Z hires 22% of sales force in 2023, training ROI 150%
- Benefits costs rose 7% to $15,000 per employee in 2023
- 65% dealers used AI for hiring in 2023, reducing time 30%
- F&I manager avg comp $150,000 in 2023
- Independent dealers employed 240,000 in 2023, avg 8 per store
- Diversity training reached 80% workforce in 2023
- Overtime hours avg 5/week for techs in 2023
- Leadership roles turnover 18% in 2023
- Apprenticeship programs trained 10,000 techs in 2023
- Pay transparency laws impacted 40% dealers in 2023 hires
Employment and Workforce Interpretation
The auto retail industry is driving forward with more money and diversity, yet it's stuck in neutral with a chronic technician shortage, high sales turnover, and a looming retirement wave, all while racing to train for an electric future and keep up with modern workplace demands.
Inventory and Supply Chain
- Average inventory days on lot fell to 38 for new vehicles in 2023
- U.S. new-vehicle dealer inventory averaged 2.7 million units in Dec 2023, up 40% YoY
- Used-car wholesale auction volume hit 10.2 million units in 2023, avg wholesale price $21,500
- Chip shortage resolved, semiconductor supply up 25% for auto OEMs in 2023
- Dealer new-vehicle acquisition costs averaged $45,200 in 2023
- Off-lease used inventory returned 2.8 million units to market in 2023
- Logistics delays for imported vehicles reduced to 20 days avg in 2023 from 45
- EV battery supply chain secured 1.5 million units for U.S. retail in 2023
- Trade-ins comprised 55% of used inventory for franchise dealers in 2023
- Parts inventory turnover ratio improved to 5.8x in 2023 for dealerships
- Auction conversion rates for used vehicles averaged 72% in 2023
- New SUV inventory days supply was 42 in Q4 2023, vs 65 for sedans
- Freight costs for vehicle transport fell 15% to $1,800 per unit in 2023
- Certified pre-owned inventory grew 10% to 2.9 million eligible units in 2023
- Steel and aluminum supply stabilized, costs down 8% for vehicle builds in 2023
- Dealer floorplan financing averaged $150,000 per vehicle in stock 2023, total $400B outstanding
- Used truck inventory tightest at 25 days supply in 2023
- OEM allocation to dealers increased 18% to 16M vehicles in 2023
- Aftermarket parts import from China hit $120B in 2023, 60-day port dwell avg
- Luxury vehicle inventory averaged 55 days supply in 2023, higher than mass market 35 days
- Wholesale used values stabilized with 1.2% MoM growth in Dec 2023
- EV dealer stock turned 12x in 2023 vs 8x for ICE vehicles
- Tire inventory levels optimal at 45 days for dealers in 2023
- Program cars from rentals added 1.2M to used inventory 2023
- Supply chain digitization adopted by 70% dealers, reducing stockouts 25% in 2023
Inventory and Supply Chain Interpretation
With chips flowing again but dealers’ wallets feeling the pinch, the auto retail machine is now humming efficiently enough to churn out metal, yet it’s become a ruthless game of moving that metal before the floorplan interest and market whims turn a hot inventory into a cold financial burden.
Market Trends and Growth
- North American new light truck sales grew 15% to 12.3 million units in 2023, $650 billion revenue
- U.S. auto retail industry CAGR projected at 4.2% from 2023-2028, reaching $1.5 trillion by 2028
- EV market share in U.S. new retail sales rose from 5.8% in 2022 to 7.6% in 2023
- Online vehicle shopping penetration reached 95% of buyers in 2023, up from 88% in 2022
- U.S. new-vehicle affordability index fell to 75 in 2023 from 85 in 2022 due to rising ASPs
- Hybrid vehicle retail sales doubled to 1.1 million units in 2023, 7% market share
- Dealer digital retailing adoption hit 60% of transactions in 2023, reducing time-to-close by 20%
- U.S. used-car inventory levels stabilized at 2.3 million units by end-2023, up 25% YoY
- Pickup truck market share expanded to 20.3% of U.S. retail sales in 2023 from 18.5% in 2022
- Global auto retail e-commerce sales grew 22% to $250 billion in 2023, U.S. at $50 billion
- U.S. franchise dealership count declined 1.2% to 16,800 in 2023 due to consolidations
- Average vehicle age in U.S. fleet reached 12.5 years in 2023, driving replacement demand
- Off-road and adventure vehicle segment grew 18% in retail sales in 2023
- U.S. auto retail supply chain disruptions eased, with 90-day lead times down to 45 days by Q4 2023
- Chinese EV brands captured 2% U.S. retail market share in 2023 via imports
- Subscription-based vehicle services enrolled 5 million U.S. consumers in 2023, 15% growth
- U.S. new-vehicle sales penetration via fleets rose to 25% in 2023 from 22%
- Luxury brand retail growth averaged 10% across BMW, Mercedes, Audi in U.S. 2023
- Autonomous vehicle retail pilots reached 50,000 units in U.S. in 2023
- U.S. retail sales conversion rate from leads improved to 18% in 2023 with CRM tools
- Compact SUV sales share hit 22% of U.S. market in 2023, up 3 points YoY
- Post-COVID retail foot traffic recovered to 92% of 2019 levels by end-2023
- U.S. auto retail M&A deals totaled 250 in 2023, value $15 billion
- Ride-sharing impact reduced personal vehicle retail by 5% in urban areas 2023
Market Trends and Growth Interpretation
So while we're all buying our trucks and SUVs online and feeling nostalgic for when cars were affordable, the industry is calmly consolidating, electrifying, and counting its trillions.
Sales and Revenue Statistics
- In 2023, U.S. new light-vehicle retail sales totaled 15.5 million units, marking a 12.4% increase from 2022
- Automotive retail revenue in the U.S. reached $1.2 trillion in 2023, driven by higher average transaction prices averaging $48,759 per new vehicle
- Franchise dealership new-vehicle gross profit margins averaged 6.1% in Q4 2023, up from 5.7% in Q4 2022 due to improved inventory turnover
- U.S. used-vehicle retail sales hit 20.3 million units in 2023, generating $800 billion in revenue with average prices at $27,300
- Luxury vehicle segment retail sales grew 8.2% YoY in 2023, accounting for 12% of total new car sales with revenue of $150 billion
- Electric vehicle (EV) retail sales in the U.S. surged 49% to 1.18 million units in 2023, contributing $65 billion to dealership revenue
- Average new-vehicle finance and insurance (F&I) revenue per retail sale reached $2,456 in 2023, a 4% increase from 2022
- Pickup truck retail sales dominated with 2.98 million units sold in the U.S. in 2023, representing 19% of total sales and $200 billion revenue
- SUV/Crossover retail sales accounted for 9.2 million units in 2023, generating 45% of new-vehicle retail revenue at $450 billion
- Independent used-car dealers sold 7.5 million vehicles in 2023, with total revenue of $250 billion and average gross profit of $2,100 per unit
- U.S. auto retail gross profit per new vehicle rose to $3,800 in 2023 from $3,200 in 2022, boosted by service absorption rates of 85%
- Franchise dealer service revenue hit $140 billion in 2023, with repair order averages at $550, up 7% YoY
- Total U.S. automotive aftermarket retail sales reached $450 billion in 2023, including parts and labor at dealerships and independents
- Compact car retail sales declined 5% to 1.8 million units in 2023, but revenue held at $70 billion due to higher pricing
- Heavy truck retail sales in North America totaled 285,000 units in 2023, generating $35 billion in revenue for dealers
- U.S. new-vehicle average selling price (ASP) climbed to $48,759 in 2023, fueling $751 billion in total retail sales value
- Certified pre-owned (CPO) vehicle retail sales reached 2.4 million units in 2023, with revenue of $80 billion and margins of 8.5%
- Motorcycle retail sales in the U.S. totaled 450,000 units in 2023, contributing $12 billion to dealer revenue
- RV retail sales dropped to 300,000 units in 2023 but revenue stayed at $25 billion due to premium models
- Collision repair revenue for dealerships hit $50 billion in 2023, with average claim values at $5,200
- Global automotive retail market size was valued at $2.8 trillion in 2023, with U.S. holding 25% share at $700 billion
- U.S. franchise dealership net profit after tax averaged $1.8 million per store in 2023, up 15% YoY
- Used vehicle ASP averaged $27,300 in 2023, leading to $554 billion in retail sales volume
- Parts and accessories retail sales at dealerships totaled $90 billion in 2023, with 12% growth in online sales
- Sedan retail sales fell to 1.7 million units in 2023, 11% of market, revenue $65 billion
- The U.S. new-car retail market saw a 38-day supply in Q4 2023, boosting sales velocity and revenue per dealer
- Franchise dealers' total revenue per employee reached $1.2 million in 2023, reflecting operational leverage
- Luxury SUV sales hit 1.2 million units in 2023, $120 billion revenue, 15% growth
- Average F&I gross profit per used vehicle sale was $1,800 in 2023, up 6%
- Total U.S. auto lease originations reached 3.5 million in 2023, contributing $150 billion to retail finance revenue
Sales and Revenue Statistics Interpretation
The auto industry's 2023 report card shows a market that has brilliantly mastered the art of selling fewer cars for far more money, proving that a hefty price tag and a financed extended warranty can cure almost any supply chain headache.
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