GITNUXREPORT 2025

Car Dealership Industry Statistics

Global industry revenue reached $2.6 trillion in 2022.

Jannik Linder

Co-Founder of Gitnux, specialized in content and tech since 2016.

First published: April 29, 2025

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Statistic 1

Around 25% of car buyers begin their purchase process online

Statistic 2

Millennials now make up approximately 40% of new car buyers in the US

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The average length of a new car purchase process has decreased from 4.7 days in 2018 to 3.8 days in 2023

Statistic 4

Nearly 60% of Millennials prefer to buy their cars from franchise dealerships

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The average dealership visits before purchase is approximately 4.4 visits

Statistic 6

The average customer satisfaction score (CSAT) for car dealerships is around 82 out of 100

Statistic 7

The median age of new car buyers is 52 years old

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45% of dealership sales come from repeat customers or referral business

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Almost 80% of car buyers use their smartphones during the purchase process

Statistic 10

Dealerships that implement virtual reality (VR) showrooms see a 15% increase in customer engagement

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Approximately 35% of new car buyers opt for financing at the point of sale

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The bulk of dealership sales (around 75%) happens within the first 90 days of listing a vehicle

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Approximately 45% of car shoppers prefer to research online before visiting a dealership

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The share of dealership websites that feature live chat has increased by 50% from 2019 to 2023

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Approximately 30% of new car buyers trade in their old vehicle as part of the purchase process

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Dealerships that invest in employee training see a 25% higher customer satisfaction rating

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In 2022, 52% of dealership customers used digital tools to complete at least part of the buying process

Statistic 18

Over 60% of dealerships consider online reviews to be critical to their reputation management

Statistic 19

More than 65% of used car buyers rely on dealer reviews during their decision-making process

Statistic 20

Over 80% of dealership websites now include online financing application options

Statistic 21

The average dealership’s customer retention rate is approximately 58%

Statistic 22

Nearly 70% of new car buyers in 2023 used digital tools or online resources during their research phase

Statistic 23

The adoption rate of contactless payment options at dealerships has increased by 45% since 2019

Statistic 24

The global automotive dealer industry revenue was approximately $2.6 trillion in 2022

Statistic 25

The United States has over 16,000 new car dealerships as of 2023

Statistic 26

The average dealership in the US sells around 700 new vehicles per year

Statistic 27

Used car sales account for approximately 38% of overall car sales in the US

Statistic 28

Certified pre-owned (CPO) cars comprise roughly 20% of used vehicle sales in the US

Statistic 29

The online car buying market grew by 30% annually from 2018 to 2022

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The global used car market is projected to reach $280 billion by 2027

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In 2023, China had over 4,500 automotive dealerships, making it the largest dealership market by volume

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The average dealership annual advertising spend surpasses $200,000

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The global automotive retail market is projected to grow at a CAGR of 4.5% from 2023 to 2030

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In 2023, online car sales accounted for nearly 10% of all new vehicle sales globally

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The used car market's resale value has increased by approximately 15% over the past 3 years

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The global automotive aftermarket is valued at over $400 billion, indicating strong parts and servicing demand

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The average age of a used vehicle on the road in the US is around 12.2 years

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Dealerships spend an average of $4,350 annually on digital marketing initiatives

Statistic 39

Car dealership vehicle inventory levels increased by 15% in 2022 after a shortage during 2021

Statistic 40

Approximately 70% of dealership revenue is generated from service and parts departments

Statistic 41

The average cost per lead for dealership digital advertising is roughly $250

Statistic 42

The average dealership employee turnover rate is approximately 36% annually

Statistic 43

The average age of dealership owners is around 57 years

Statistic 44

Automated inventory management systems have increased dealership efficiency by 20%

Statistic 45

The number of dealerships closing each year in the US has decreased by about 10% from 2018 to 2023

Statistic 46

The average number of vehicles sold per dealership in Europe is approximately 850 annually

Statistic 47

The average new car dealer in the US spends about 20% of revenue on employee wages

Statistic 48

The average length of time a vehicle remains in a dealership’s inventory before sale is approximately 30 days

Statistic 49

The dealership industry employs over 1 million people in the US alone

Statistic 50

The average dealership’s digital conversion rate (visits to sales) is approximately 8%

Statistic 51

The number of EV charging stations linked directly to dealership lots increased by 40% in 2022, supporting EV sales growth

Statistic 52

The median number of days a used car stays in inventory in the US is approximately 33 days

Statistic 53

The average profit margin for new car dealerships is about 2.5%

Statistic 54

The average dealership's annual revenue from service and maintenance is $1.2 million

Statistic 55

The median gross profit per vehicle sold at dealerships is approximately $2,100

Statistic 56

The average percentage of dealership revenue from vehicle parts sales is about 15%

Statistic 57

The average dealership operating profit before taxes is roughly 4%

Statistic 58

The average profit per used vehicle at dealerships is about $890

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The average customer lifetime value (CLV) for dealership clients is estimated at around $36,000

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The average gross profit per vehicle in Europe is around €1,200

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The average dealership spends about 12% of its revenue on customer retention marketing programs

Statistic 62

Electric vehicles accounted for about 6% of new car sales in the US in 2023

Statistic 63

The number of electric vehicle (EV) dealerships is expected to grow by 22% annually through 2025

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Approximately 65% of used cars sold in 2022 were purchased from dealerships

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Digital retailing solutions have been adopted by 70% of dealerships in 2023

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Dealerships using artificial intelligence (AI) for customer interactions report a 20% increase in lead conversions

Statistic 67

The percentage of dealership sales generated through online lead submissions has increased by 35% from 2018 to 2023

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In 2023, fewer dealerships are maintaining physical showrooms, with 25% adopting fully digital retail models

Statistic 69

Dealerships with integrated customer relationship management (CRM) systems have a 20% higher sales conversion rate

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Key Highlights

The global automotive dealer industry revenue was approximately $2.6 trillion in 2022
The United States has over 16,000 new car dealerships as of 2023
The average dealership in the US sells around 700 new vehicles per year
Used car sales account for approximately 38% of overall car sales in the US
The average profit margin for new car dealerships is about 2.5%
Certified pre-owned (CPO) cars comprise roughly 20% of used vehicle sales in the US
The online car buying market grew by 30% annually from 2018 to 2022
Around 25% of car buyers begin their purchase process online
Millennials now make up approximately 40% of new car buyers in the US
Electric vehicles accounted for about 6% of new car sales in the US in 2023
The average age of a used vehicle on the road in the US is around 12.2 years
The global used car market is projected to reach $280 billion by 2027
Dealerships spend an average of $4,350 annually on digital marketing initiatives

The automotive dealership industry is revolutionizing itself amidst a dynamic landscape, generating over $2.6 trillion globally in 2022, with digital innovation and shifting consumer preferences reshaping how millions buy, sell, and service vehicles.

Customer Behavior and Preferences

Around 25% of car buyers begin their purchase process online
Millennials now make up approximately 40% of new car buyers in the US
The average length of a new car purchase process has decreased from 4.7 days in 2018 to 3.8 days in 2023
Nearly 60% of Millennials prefer to buy their cars from franchise dealerships
The average dealership visits before purchase is approximately 4.4 visits
The average customer satisfaction score (CSAT) for car dealerships is around 82 out of 100
The median age of new car buyers is 52 years old
45% of dealership sales come from repeat customers or referral business
Almost 80% of car buyers use their smartphones during the purchase process
Dealerships that implement virtual reality (VR) showrooms see a 15% increase in customer engagement
Approximately 35% of new car buyers opt for financing at the point of sale
The bulk of dealership sales (around 75%) happens within the first 90 days of listing a vehicle
Approximately 45% of car shoppers prefer to research online before visiting a dealership
The share of dealership websites that feature live chat has increased by 50% from 2019 to 2023
Approximately 30% of new car buyers trade in their old vehicle as part of the purchase process
Dealerships that invest in employee training see a 25% higher customer satisfaction rating
In 2022, 52% of dealership customers used digital tools to complete at least part of the buying process
Over 60% of dealerships consider online reviews to be critical to their reputation management
More than 65% of used car buyers rely on dealer reviews during their decision-making process
Over 80% of dealership websites now include online financing application options
The average dealership’s customer retention rate is approximately 58%
Nearly 70% of new car buyers in 2023 used digital tools or online resources during their research phase
The adoption rate of contactless payment options at dealerships has increased by 45% since 2019

Customer Behavior and Preferences Interpretation

In an era where nearly half of car buyers start their journey online, Millennials now making up 40% of new purchasers and virtual reality boosting engagement by 15%, dealerships must accelerate their digital transformation—while still navigating an average of 4.4 visits and a 58% retention rate—otherwise, they risk losing ground in the fast-paced, review-driven, and tech-savvy automotive marketplace.

Industry Revenue and Market Size

The global automotive dealer industry revenue was approximately $2.6 trillion in 2022
The United States has over 16,000 new car dealerships as of 2023
The average dealership in the US sells around 700 new vehicles per year
Used car sales account for approximately 38% of overall car sales in the US
Certified pre-owned (CPO) cars comprise roughly 20% of used vehicle sales in the US
The online car buying market grew by 30% annually from 2018 to 2022
The global used car market is projected to reach $280 billion by 2027
In 2023, China had over 4,500 automotive dealerships, making it the largest dealership market by volume
The average dealership annual advertising spend surpasses $200,000
The global automotive retail market is projected to grow at a CAGR of 4.5% from 2023 to 2030
In 2023, online car sales accounted for nearly 10% of all new vehicle sales globally
The used car market's resale value has increased by approximately 15% over the past 3 years
The global automotive aftermarket is valued at over $400 billion, indicating strong parts and servicing demand

Industry Revenue and Market Size Interpretation

With a staggering $2.6 trillion industry worth reflecting both tradition and innovation, the automotive dealership market continues to accelerate—driven by soaring online sales, rising used car valuations, and a rapidly expanding global footprint—revealing that whether on Main Street or in the digital race, car sales are steering towards a future where adaptability and understanding data are essential fuel.

Operational Metrics and Technologies

The average age of a used vehicle on the road in the US is around 12.2 years
Dealerships spend an average of $4,350 annually on digital marketing initiatives
Car dealership vehicle inventory levels increased by 15% in 2022 after a shortage during 2021
Approximately 70% of dealership revenue is generated from service and parts departments
The average cost per lead for dealership digital advertising is roughly $250
The average dealership employee turnover rate is approximately 36% annually
The average age of dealership owners is around 57 years
Automated inventory management systems have increased dealership efficiency by 20%
The number of dealerships closing each year in the US has decreased by about 10% from 2018 to 2023
The average number of vehicles sold per dealership in Europe is approximately 850 annually
The average new car dealer in the US spends about 20% of revenue on employee wages
The average length of time a vehicle remains in a dealership’s inventory before sale is approximately 30 days
The dealership industry employs over 1 million people in the US alone
The average dealership’s digital conversion rate (visits to sales) is approximately 8%
The number of EV charging stations linked directly to dealership lots increased by 40% in 2022, supporting EV sales growth
The median number of days a used car stays in inventory in the US is approximately 33 days

Operational Metrics and Technologies Interpretation

Despite a plateauing dealership landscape marked by aging owners, high employee turnover, and hefty digital marketing spends, the industry's shift toward automation, EV infrastructure growth, and longer vehicle retention times suggests that embracing innovation and efficiency remains the key to turning the countless miles of opportunity into profit.

Profitability and Financial Performance

The average profit margin for new car dealerships is about 2.5%
The average dealership's annual revenue from service and maintenance is $1.2 million
The median gross profit per vehicle sold at dealerships is approximately $2,100
The average percentage of dealership revenue from vehicle parts sales is about 15%
The average dealership operating profit before taxes is roughly 4%
The average profit per used vehicle at dealerships is about $890
The average customer lifetime value (CLV) for dealership clients is estimated at around $36,000
The average gross profit per vehicle in Europe is around €1,200
The average dealership spends about 12% of its revenue on customer retention marketing programs

Profitability and Financial Performance Interpretation

While car dealerships skillfully accelerate their service and parts revenue—adding up to nearly $1.2 million annually—these modest profit margins of around 2.5% remind us that even in high-octane industries, staying afloat often depends on volume and savvy customer retention, not just sticker prices.

Sales and Purchase Channels

Electric vehicles accounted for about 6% of new car sales in the US in 2023
The number of electric vehicle (EV) dealerships is expected to grow by 22% annually through 2025
Approximately 65% of used cars sold in 2022 were purchased from dealerships
Digital retailing solutions have been adopted by 70% of dealerships in 2023
Dealerships using artificial intelligence (AI) for customer interactions report a 20% increase in lead conversions
The percentage of dealership sales generated through online lead submissions has increased by 35% from 2018 to 2023
In 2023, fewer dealerships are maintaining physical showrooms, with 25% adopting fully digital retail models
Dealerships with integrated customer relationship management (CRM) systems have a 20% higher sales conversion rate

Sales and Purchase Channels Interpretation

As electric vehicles inch into the market with just 6% of sales in 2023, dealerships are turbocharging their digital transformation—embracing AI, online leads, and virtual showrooms—proving that in the race toward future mobility, the smartest dealership wins.