While the electric revolution captured headlines with 1.2 million EVs sold, the true power of the American car dealership in 2023 was its staggering breadth, moving 15.5 million new vehicles and 36.3 million used ones to reveal an industry firing on all cylinders.
Key Takeaways
- In 2023, U.S. new-car dealerships sold a total of 15.5 million new vehicles, marking a 12.4% increase from 2022
- Light truck sales accounted for 79.3% of total new vehicle sales at U.S. dealerships in 2023
- Average new vehicle sales per U.S. dealership roof in 2023 was 1,112 units, up 11% from the previous year
- Average gross profit per new vehicle sold at dealerships was $4,842 in 2023
- U.S. dealership net profit after tax averaged $1.5 million per store in 2023, up 5% from 2022
- Fixed operations departments generated 52% of total dealership gross profit in 2023
- Average new vehicle inventory value per dealership was $42 million in 2023
- Days' supply for new vehicles at dealerships averaged 65 days in Q4 2023
- Used vehicle inventory levels at dealerships stabilized at 2.4 million units in 2023
- 62% of consumers visited dealership websites before in-person visits in 2023 survey
- Millennial buyers aged 27-42 accounted for 38% of new car purchases at dealerships in 2023
- 78% of buyers used online tools to research vehicles before dealership visit in 2023
- Overall U.S. auto retail market projected to grow at 4.2% CAGR to 2030 for dealerships
- EV adoption expected to reach 30% of dealership sales by 2030
- Number of U.S. franchised dealerships declined to 16,850 in 2023 from 17,000 in 2022
In 2023, U.S. dealership sales rose significantly for both new and used vehicles.
Customer Behavior
- 62% of consumers visited dealership websites before in-person visits in 2023 survey
- Millennial buyers aged 27-42 accounted for 38% of new car purchases at dealerships in 2023
- 78% of buyers used online tools to research vehicles before dealership visit in 2023
- Average time spent at dealership during purchase was 3.2 hours in 2023
- 41% of buyers negotiated price digitally before visiting dealership in 2023
- Female buyers represented 52% of total vehicle transactions at dealerships in 2023
- Gen Z shoppers under 25 made up 12% of dealership foot traffic in 2023
- 65% of customers expected test drives to be scheduled online in 2023
- Loyalty rate to dealership brands was 57% among repeat buyers in 2023
- 73% of buyers read online reviews before choosing a dealership in 2023
- Hispanic buyers increased to 22% of new vehicle sales at dealerships in 2023
- Average down payment by first-time buyers was 10.2% of vehicle price in 2023
- 55% of EV intenders visited multiple dealerships before purchase in 2023
- Post-sale satisfaction scored 862/1000 for dealership experiences in 2023
- 48% of buyers financed 72+ months on average loan terms in 2023
- Remote purchase adoption reached 24% of total sales at dealerships in 2023
- Baby boomers over 60 accounted for 28% of luxury vehicle purchases in 2023
Customer Behavior Interpretation
The modern car buyer, armed with online research and digital negotiation tools, now treats the dealership less as a destination and more as a final, hands-on checkpoint in a purchase process they've largely orchestrated from their couch.
Financial Metrics
- Average gross profit per new vehicle sold at dealerships was $4,842 in 2023
- U.S. dealership net profit after tax averaged $1.5 million per store in 2023, up 5% from 2022
- Fixed operations departments generated 52% of total dealership gross profit in 2023
- Average finance and insurance (F&I) gross profit per retail unit was $2,436 in 2023
- Dealership service departments averaged $4.2 million in annual revenue per store in 2023
- Parts department gross margins at dealerships averaged 48.7% in 2023
- Total U.S. dealership industry revenue reached $1.2 trillion in 2023
- Average operating expense ratio for dealerships was 87.2% of gross revenue in 2023
- New vehicle department gross profit margin averaged 5.8% across U.S. dealerships in 2023
- Used vehicle gross profit per unit averaged $2,984 at dealerships in 2023
- Dealership capital expenditures averaged $1.8 million per store for facilities in 2023
- F&I penetration rate for vehicles averaged 102% per retail unit in 2023
- Service labor gross margin was 68.4% on average for dealerships in 2023
- Average dealership EBITDA margin was 4.2% in 2023
- Wholesale gross profit per unit sold averaged $1,256 in 2023
- Total industry pretax profit for franchised dealerships was $18.4 billion in 2023
- Average customer pay labor rate at service departments was $168.45 per hour in 2023
- Dealership body shop gross profit margin averaged 12.5% in 2023
- Finance reserve income grew 7% to $14 billion industry-wide in 2023
Financial Metrics Interpretation
The modern car dealership is less about haggling over the price of metal and more about a meticulously engineered profit ecosystem, where the real money is made not on the sales floor but in the service bay, finance office, and parts counter, turning every customer into a long-term revenue stream long after the new-car smell has faded.
Industry Trends
- Overall U.S. auto retail market projected to grow at 4.2% CAGR to 2030 for dealerships
- EV adoption expected to reach 30% of dealership sales by 2030
- Number of U.S. franchised dealerships declined to 16,850 in 2023 from 17,000 in 2022
- Autonomous vehicle tech integration in 15% of new models at dealerships by 2025 forecast
- Digital retailing tools used by 92% of dealerships in 2023, up from 65% in 2020
- Independent dealerships grew to 19,200 locations in the U.S. in 2023
- Subscription models piloted at 8% of dealerships for vehicle access in 2023
- Used EV sales projected to triple to 1.5 million by 2025 at dealerships
- Dealership consolidation: top 50 groups control 12% of new sales in 2023
- Service revenue expected to grow 6% annually through 2028 for dealerships
- 25% of dealerships plan EV-exclusive lots by 2027
- Ride-sharing impact reduces personal auto ownership demand by 5% by 2030 forecast
- Average dealership employee count rose to 312 per store in 2023
- Online-to-offline conversion rate improved to 18% industry-wide in 2023
- Hydrogen fuel cell vehicles enter 2% of dealership inventories by 2028 projection
Industry Trends Interpretation
While the traditional dealership model is consolidating into fewer hands and adding more digital shine, its future hinges on a profound transformation from simply selling cars to mastering electric, autonomous, and subscription-based mobility, all while keeping the service bay humming.
Inventory and Supply Chain
- Average new vehicle inventory value per dealership was $42 million in 2023
- Days' supply for new vehicles at dealerships averaged 65 days in Q4 2023
- Used vehicle inventory levels at dealerships stabilized at 2.4 million units in 2023
- Average age of new vehicle inventory at dealerships was 48 days old in 2023
- Dealerships turned used inventory 8.2 times per year on average in 2023
- Chip shortage resolved, leading to 15% increase in OEM allocations to dealerships in 2023
- Average cost per new vehicle acquired by dealerships was $46,200 in 2023
- 72% of dealerships reported inventory shortages for popular models in early 2023
- EV inventory days' supply at dealerships was 82 days average in 2023
- Dealership wholesale auction purchases averaged 1.2 million vehicles monthly in 2023
- Off-lease vehicles returned to dealerships totaled 3.8 million in 2023
- Average mileage on used inventory at dealerships was 42,500 miles in 2023
- Luxury used inventory appreciated 5% in value year-over-year at dealerships in 2023
- Dealerships held 45 days' supply of trucks versus 72 for sedans in 2023
- Trade-in volume at dealerships reached 7.5 million vehicles in 2023
- Average acquisition cost for used cars via auction was $23,450 in 2023
- OEMs shipped 16.2 million new vehicles to dealership lots in 2023
- Certified pre-owned inventory averaged 45,000 units per major brand dealership in 2023
Inventory and Supply Chain Interpretation
After the chip shortage ended, dealers found themselves sitting on a luxurious yet stressful $42 million pile of metal where the EVs are getting lonely, the used cars are flying off the lot, and everyone is still looking for that one popular model they can't quite seem to stock.
Sales Statistics
- In 2023, U.S. new-car dealerships sold a total of 15.5 million new vehicles, marking a 12.4% increase from 2022
- Light truck sales accounted for 79.3% of total new vehicle sales at U.S. dealerships in 2023
- Average new vehicle sales per U.S. dealership roof in 2023 was 1,112 units, up 11% from the previous year
- Electric vehicle sales at U.S. dealerships reached 1.2 million units in 2023, representing 7.6% of total sales
- Used vehicle sales through U.S. dealerships totaled 36.3 million units in 2023
- Franchise dealerships in the U.S. averaged 9 new vehicle sales per salesperson per month in 2023
- Pickup truck models dominated dealership sales with Ford F-Series selling 750,789 units in 2023
- Luxury vehicle sales at dealerships grew by 15% year-over-year to 2.8 million units in 2023
- Dealerships reported a 22% increase in certified pre-owned (CPO) vehicle sales, reaching 2.4 million units in 2023
- SUV sales comprised 52.1% of all new vehicle retail sales at U.S. dealerships in Q4 2023
- Independent dealerships sold 17 million used vehicles in 2023, accounting for 47% of the used market
- Average days to turn new inventory at dealerships dropped to 59 days in 2023 from 71 in 2022
- Tesla vehicles made up 55% of all EV sales through franchised dealerships in 2023
- Commercial vehicle sales at dealerships increased 8% to 1.9 million units in 2023
- Women purchased 52% of new vehicles at dealerships in 2023, per transaction data analysis
- Online sales conversions at dealerships reached 28% of total leads in 2023
- Hybrid vehicle sales surged 42% at dealerships to 1.1 million units in 2023
- Average transaction price for new vehicles at dealerships hit $48,759 in 2023
- Dealerships saw 14% growth in fleet sales, totaling 2.1 million units in 2023
- Import brand sales at U.S. dealerships rose 18% to 5.2 million vehicles in 2023
Sales Statistics Interpretation
While America stubbornly insists on driving trucks taller than some apartments and paying nearly fifty grand for the privilege, our dealerships are quietly, efficiently, and increasingly electrifying the nation's fleet one overworked salesperson at a time.
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