While it's easy to overlook the sprawling car dealership on the corner, this trillion-dollar engine of the American economy, supporting one in every twenty jobs and selling a vehicle nearly every three seconds, is undergoing a digital revolution that is reshaping how we buy, service, and even think about personal transportation.
Key Takeaways
- In 2023, U.S. franchised new-car dealerships sold 11.3 million new vehicles, generating $772 billion in revenue.
- The total economic contribution of the U.S. auto retail industry in 2023 reached $1.2 trillion, supporting 9.2 million jobs.
- Average annual revenue per U.S. new-car dealership in 2023 was $85.2 million.
- U.S. new light-vehicle sales totaled 15.5 million units in 2023.
- Used vehicle sales in the U.S. reached 36.3 million units in 2023.
- Average dealership sold 298 new vehicles per store in 2023.
- 55% of U.S. new car buyers were millennials or Gen Z in 2023.
- 81% of car buyers researched online before visiting a dealership in 2023.
- Average time to buy a new car was 14 hours and 38 minutes in 2023.
- U.S. auto dealerships employed 1.2 million people in 2023.
- Average dealership workforce size was 325 employees in 2023.
- Sales department turnover rate was 42% in dealerships in 2023.
- 35% adoption rate of omnichannel retailing tools in dealerships in 2023.
- 92% of dealerships had websites, with 70% mobile-optimized in 2023.
- Digital retailing completed 25% of deals start-to-finish in 2023.
Despite industry challenges, U.S. auto dealerships demonstrated robust revenue and substantial economic impact in 2023.
Consumer Trends
155% of U.S. new car buyers were millennials or Gen Z in 2023.
Verified281% of car buyers researched online before visiting a dealership in 2023.
Verified3Average time to buy a new car was 14 hours and 38 minutes in 2023.
Verified462% of buyers preferred SUVs or trucks over sedans in 2023 surveys.
Directional5Female buyers accounted for 52% of new vehicle purchases in 2023.
Single source644% of shoppers used mobile apps for vehicle research in 2023.
Verified7Loyalty rate to previous brand was 52% for new car buyers in 2023.
Verified867% of buyers considered fuel efficiency as top factor in 2023.
Verified9Average down payment on new vehicles was 10% of MSRP in 2023.
Directional1028% of buyers traded in their old vehicle online in 2023.
Single source11Gen Z buyers increased 15% YoY, representing 18% of sales in 2023.
Verified1273% of buyers read online reviews before purchasing in 2023.
Verified13Hispanic buyers grew to 20% of new vehicle market in 2023.
Verified1459% preferred leasing over buying in 2023 for new vehicles.
Directional15Safety features influenced 68% of purchase decisions in 2023.
Single source1641% of buyers negotiated price digitally in 2023.
Verified17Repeat customers made up 45% of dealership sales in 2023.
Verified1876% of EV intenders cited range anxiety in 2023 surveys.
Verified19Average buyer age for new cars was 53 years in 2023.
Directional2064% of buyers prioritized tech features like infotainment in 2023.
Single source21Cash purchases dropped to 9% of new vehicle sales in 2023.
Verified2270% of luxury buyers valued brand prestige in 2023.
Verified2352% of used car buyers were first-time owners in 2023.
Verified24Home delivery requested by 35% of buyers post-pandemic in 2023.
Directional2561% considered total ownership cost in decisions in 2023.
Single source26Women influenced 80% of household vehicle purchases in 2023.
Verified2748% of buyers test-drove fewer than 3 vehicles in 2023.
VerifiedConsumer Trends Interpretation
The dealership floor may still smell like old coffee and ambition, but its future is now being decided by digitally-native, SUV-preferring women who have already done their homework on their phones, leaving salespeople to navigate a world where the test drive is almost a formality and the real negotiation happens in a browser tab.
Digital & Technology
135% adoption rate of omnichannel retailing tools in dealerships in 2023.
Verified292% of dealerships had websites, with 70% mobile-optimized in 2023.
Verified3Digital retailing completed 25% of deals start-to-finish in 2023.
Verified4CRM software used by 85% of U.S. dealerships in 2023.
Directional5Average dealership invested $450,000 in digital tech in 2023.
Single source6Desking software adoption reached 75% in F&I departments in 2023.
Verified740% of service appointments booked online in 2023.
Verified8AI chatbots handled 30% of initial inquiries in 2023.
Verified9Inventory management systems covered 95% of dealership operations in 2023.
Directional10Virtual test drives offered by 55% of dealerships in 2023.
Single source11Blockchain for title processing piloted in 10% of states in 2023.
Verified12360-degree vehicle imaging used on 80% of online listings in 2023.
Verified13Data analytics ROI averaged 5:1 for dealerships in 2023.
Verified1475% of buyers expected seamless digital-to-physical handoff in 2023.
Directional15Cybersecurity incidents affected 12% of dealerships in 2023.
Single source16Electric vehicle diagnostic tools adopted by 60% of service bays in 2023.
Verified17Social media drove 28% of showroom traffic in 2023.
Verified18Robotic process automation in accounting used by 45% in 2023.
Verified19AR/VR for customization viewed by 20% of online shoppers in 2023.
Directional20Cloud-based DMS penetration was 88% in 2023.
Single source21Personalized email marketing open rates averaged 35% in 2023.
Verified2250% of F&I menus presented digitally in 2023.
Verified23Predictive analytics for inventory used by 65% of large dealers in 2023.
Verified24Voice commerce trials in 15% of dealership apps in 2023.
Directional2582% customer satisfaction with digital service scheduling in 2023.
Single source26Metaverse showrooms tested by 5 top dealer groups in 2023.
Verified27NFC keyless delivery implemented in 25% of urban dealerships in 2023.
Verified28Big data integration boosted sales 18% for adopters in 2023.
Verified29Mobile payment acceptance at 70% of service counters in 2023.
DirectionalDigital & Technology Interpretation
The car dealership industry is currently a fascinating digital chimera: a heavily invested, well-connected brain that's still occasionally startled by its own high-tech limbs, trying to appease a customer who already lives in the future it's racing to build.
Employment & Workforce
1U.S. auto dealerships employed 1.2 million people in 2023.
Verified2Average dealership workforce size was 325 employees in 2023.
Verified3Sales department turnover rate was 42% in dealerships in 2023.
Verified4Service technicians numbered 260,000 across U.S. dealerships in 2023.
Directional5Average salesperson earned $139,000 total compensation in 2023.
Single source665% of dealerships reported staffing shortages in 2023 surveys.
Verified7Parts department employees averaged 35 per dealership in 2023.
Verified8Female employees made up 22% of dealership workforce in 2023.
Verified9Average service advisor pay was $125,000 in 2023.
Directional10Dealerships hired 150,000 new employees in 2023.
Single source11Fixed operations employed 55% of total dealership staff in 2023.
Verified12Technician productivity averaged 140 hours per employee per month in 2023.
Verified1330% of dealership managers were under 40 years old in 2023.
Verified14Average benefits cost per employee was $18,500 in 2023.
Directional15Sales staff averaged 45 employees per dealership in 2023.
Single source16EV-trained technicians reached 50,000 in U.S. dealerships by 2023.
Verified17Overtime hours for technicians averaged 10% of total in 2023.
Verified18Dealership HR spending increased 12% to $2.5 million per store in 2023.
Verified1978% of dealerships offered remote work options in 2023.
Directional20Average tenure for general managers was 8.2 years in 2023.
Single source21Minority employees comprised 42% of workforce in 2023.
Verified22Training hours per employee averaged 32 annually in 2023.
Verified23Parts counter staff turnover was 28% in 2023.
Verified24Administrative staff numbered 60 per average dealership in 2023.
Directional2555% of technicians were certified ASE in 2023.
Single source26F&I managers averaged $250,000 compensation in 2023.
Verified27Dealerships with 100+ employees grew 5% in number in 2023.
Verified28Labor cost as % of service revenue was 48% in 2023.
Verified2962% of dealerships used AI for recruitment in 2023.
Directional30Average age of service technicians was 46 years in 2023.
Single sourceEmployment & Workforce Interpretation
The American car dealership is a land of golden handcuffs, where a few well-paid lifers steer the ship through a sea of churning salespeople while an aging, overworked technician army—constantly being recruited by AI—tries to keep the lights on and the profits in the service bays.
Industry Trends & Projections
1EV sales projected to reach 10% of total U.S. market by 2025.
Verified2Autonomous vehicle tech adoption in fleets to grow 300% by 2030.
Verified3Dealership consolidations expected to reduce store count 15% by 2028.
Verified4Used EV market to expand to 2 million annual sales by 2027.
Directional5Service revenue projected to rise 25% by 2027 due to aging fleet.
Single source6Direct-to-consumer sales models to capture 20% market by 2030.
Verified7Hydrogen fuel cell vehicles to hit 500,000 global sales by 2030.
Verified8Average new vehicle price forecasted at $52,000 by 2027.
Verified940% of sales to be fully digital by 2028 per industry analysts.
Directional10Dealership M&A volume up 20% annually through 2025.
Single source11Software-defined vehicles to dominate 60% of market by 2030.
Verified12Mobility-as-a-Service subscriptions to grow to 15% of urban transport by 2030.
Verified13Inventory levels to normalize at 60 days supply by mid-2025.
Verified14Chinese OEMs to hold 10% U.S. market share by 2030.
Directional15Aftersales digital penetration to reach 50% by 2027.
Single source16Ride-sharing impact to reduce personal ownership 10% by 2030.
Verified17Battery recycling infrastructure to support 80% circular economy by 2035.
Verified18Premium segment growth at 4% CAGR to 2028.
Verified19Supply chain resilience investments to double by 2026.
Directional20Subscription models for features to generate $50B revenue by 2030.
Single source21Urban dealership square footage to shrink 30% by 2030.
Verified22Gen Alpha to drive 25% of sales by 2035.
Verified23Carbon-neutral dealership operations at 50% by 2030 goal.
Verified24V2G tech rollout to 20% of EVs by 2028.
Directional25Personalized manufacturing to cut lead times 40% by 2027.
Single source26Dealer profit margins to stabilize at 2.5% post-2025.
Verified27Over-the-air updates to become standard in 90% new vehicles by 2027.
Verified28Micro-mobility integration in 30% of dealer services by 2030.
VerifiedIndustry Trends & Projections Interpretation
The car dealership of the future won't just sell you a car—it's a high-tech, streamlined hub where your subscription-based software rides around on recycled batteries, occasionally earning you money by selling power back to the grid, all while fewer but savvier dealers compete for your attention online and in smaller showrooms.
Market Size & Revenue
1In 2023, U.S. franchised new-car dealerships sold 11.3 million new vehicles, generating $772 billion in revenue.
Verified2The total economic contribution of the U.S. auto retail industry in 2023 reached $1.2 trillion, supporting 9.2 million jobs.
Verified3Average annual revenue per U.S. new-car dealership in 2023 was $85.2 million.
Verified4U.S. auto dealerships paid $100 billion in wages and benefits in 2023.
Directional5New-car dealership gross profit margins averaged 5.8% in 2023 across all departments.
Single source6The global automotive dealership market size was valued at $1.1 trillion in 2022.
Verified7U.S. used-car dealership revenue hit $250 billion in 2023.
Verified8Franchised dealerships accounted for 92% of U.S. new vehicle sales revenue in 2023.
Verified9Average dealership service and parts revenue grew 8% to $18.4 million per store in 2023.
Directional10U.S. auto retail industry's GDP contribution was $505 billion in 2023.
Single source11Independent used-car dealers generated $150 billion in sales in 2022.
Verified12Luxury car dealerships saw average revenues of $120 million per store in 2023.
Verified13Total U.S. dealership F&I revenue reached $19.3 billion in 2023.
Verified14EV dealership segment revenue grew 45% year-over-year to $50 billion in 2023.
Directional15Collision repair revenue for dealerships averaged $4.2 million per store in 2023.
Single source16U.S. new vehicle sales revenue per dealership averaged $62 million in 2023.
Verified17Used vehicle department revenue per dealership was $28.5 million in 2023.
Verified18Dealership taxes paid totaled $45 billion in the U.S. in 2023.
Verified19Average gross profit per new vehicle retailed was $2,150 in 2023.
Directional20U.S. dealership capital expenditures reached $10 billion in 2023.
Single source21Parts department gross margins averaged 48% in U.S. dealerships in 2023.
Verified22Service labor gross margins were 52% on average for dealerships in 2023.
Verified23Total U.S. auto retail vendor payments were $400 billion in 2023.
Verified24Dealership net profitability averaged 2.1% of gross revenue in 2023.
Directional25Average revenue per employee in U.S. dealerships was $412,000 in 2023.
Single source26F&I gross profit per vehicle averaged $2,100 in 2023.
Verified27U.S. used car retail market size was $1.19 trillion in transaction value in 2023.
Verified28Dealership advertising expenses averaged $1.8 million per store in 2023.
Verified29Total U.S. dealership real estate value exceeded $300 billion in 2023.
Directional30OEM incentives to dealerships totaled $28 billion in 2023.
Single sourceMarket Size & Revenue Interpretation
If you think cars are expensive, consider that the entire U.S. dealership ecosystem is a perpetually humming, trillion-dollar economic engine held together by a shockingly thin layer of profit margin and a mountain of floor mats.
Sales & Volume
1U.S. new light-vehicle sales totaled 15.5 million units in 2023.
Verified2Used vehicle sales in the U.S. reached 36.3 million units in 2023.
Verified3Average dealership sold 298 new vehicles per store in 2023.
Verified4Pickup trucks accounted for 21% of U.S. new vehicle sales in 2023.
Directional5SUVs and crossovers made up 54% of new car sales in 2023.
Single source6Electric vehicle sales grew to 1.2 million units in the U.S. in 2023, up 50% YoY.
Verified7Average days to turn new vehicle inventory was 58 days in Q4 2023.
Verified8Used car inventory averaged 2.3 million units at retail in 2023.
Verified9Franchised dealers sold 78% of all used vehicles in 2023.
Directional10Online vehicle sales represented 15% of total U.S. auto sales in 2023.
Single source11Average selling price of new vehicles reached $48,759 in 2023.
Verified12Certified pre-owned sales hit 2.3 million units in 2023.
Verified13Dealerships retailed 9.1 million used vehicles from franchised lots in 2023.
Verified14Luxury vehicle sales volume was 2.8 million units in 2023.
Directional15Average monthly new vehicle sales rate was 1.3 million in Q4 2023.
Single source16Used vehicle average selling price was $27,300 in December 2023.
Verified17Import brand new vehicle sales share was 49% in 2023.
Verified18Domestic brand new vehicle sales share was 51% in 2023.
Verified19Total U.S. light truck sales reached 11.1 million units in 2023.
Directional20Passenger car sales declined to 4.4 million units in 2023.
Single source21Average inventory per dealership was 1,012 new vehicles in 2023.
Verified2265% of used cars sold in 2023 had fewer than 50,000 miles.
Verified23Hybrid vehicle sales surged to 1.1 million units in 2023.
Verified24Tesla Model Y was the top-selling vehicle with 385,000 units in 2023.
Directional25Ford F-Series sold 750,000 units, leading trucks in 2023.
Single source26Retail used supply increased 12% YoY to 2.45 million units in Q4 2023.
Verified2772% of consumers financed their vehicle purchase in 2023.
VerifiedSales & Volume Interpretation
Americans are buying trucks and SUVs for nearly $50,000 apiece, but we’re clearly hedging our bets by also snatching up over twice as many used cars, just in case the electric future needs a slightly more affordable test drive.
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