While headlines screamed about a struggling economy, the American dealership industry quietly powered through 2022, posting a staggering $1.22 trillion in revenue and proving its resilience lies not just in moving metal but in an intricate, profit-generating ecosystem of service, finance, and used vehicles.
Key Takeaways
- In 2022, new-car dealers in the United States generated a total revenue of $1.22 trillion, marking a 12% increase from the previous year.
- The average net profit margin for new-car dealerships in the US reached 5.2% in 2022, up from 4.8% in 2021.
- Used-vehicle departments at franchised new-car dealerships reported pretax profits of $16,611 per vehicle in 2022.
- New light-vehicle retail sales in the US totaled 13.8 million units in 2022.
- Franchised new-car dealers retailed 7.9 million new vehicles in 2022.
- Independent dealers sold 8.3 million used vehicles in 2022.
- The US auto dealership industry employed 1.2 million people in 2022.
- New-car dealerships had 145,000 sales employees in 2022.
- Service technicians at franchised dealerships numbered 115,000 in 2022, facing a shortage of 30,000.
- New-car dealership new vehicle inventory averaged 268 units per dealer in 2022.
- Used vehicle inventory days' supply at dealerships was 40 days in December 2022.
- Total new vehicle inventory at US dealerships reached 2.7 million units by end of 2022.
- Customer satisfaction score for dealerships averaged 82/100 in 2022 J.D. Power study.
- 68% of car buyers used online tools before visiting dealerships in 2022.
- Average dealership visit time was 3.2 hours for new vehicle purchases in 2022.
The dealer industry saw robust revenue and profit growth across new, used, and service departments in 2022.
Customer Satisfaction and Trends
- Customer satisfaction score for dealerships averaged 82/100 in 2022 J.D. Power study.
- 68% of car buyers used online tools before visiting dealerships in 2022.
- Average dealership visit time was 3.2 hours for new vehicle purchases in 2022.
- 55% of buyers cited inventory availability as top satisfaction factor in 2022.
- Online vehicle reservations at dealerships increased 120% from 2021 to 2022.
- 73% of Gen Z buyers preferred digital retailing tools at dealerships in 2022.
- Repeat purchase rate from same dealership was 42% in 2022.
- 61% of customers rated transparency in pricing as excellent in 2022 surveys.
- EV buyer satisfaction at dealerships was 78/100, below average in 2022.
- 49% of buyers financed 100% of vehicle cost at dealerships in 2022.
- Net Promoter Score (NPS) for top dealerships averaged 65 in 2022.
- 82% of customers used mobile apps for service appointments in 2022.
- Hispanic buyers grew to 22% of total dealership sales in 2022.
- Delivery satisfaction scored 84/100 in J.D. Power APEAL study 2022.
- 67% of buyers expected contactless processes at dealerships post-COVID in 2022.
- Service satisfaction averaged 810/1000 in J.D. Power CSI study 2022.
- 35% of customers chose dealerships for one-price selling models in 2022.
- Loyalty rate for luxury brand dealerships was 58% in 2022.
- 76% of online leads converted to showroom visits in 2022.
- Complaints about wait times dropped 15% with better scheduling in 2022.
- 92% of 60+ age group preferred in-person dealership experiences in 2022.
- Average online reviews per dealership reached 250 in 2022.
- 78% of dealership websites had virtual tour features adopted by 2022.
- Trade-in acceptance rate was 95% for buyers at dealerships in 2022.
- 45% of US adults considered purchasing from a dealership in the next 12 months as of 2023.
Customer Satisfaction and Trends Interpretation
Today’s dealership must cleverly straddle two worlds: a digital showroom that draws savvy, time-pressed buyers online, and a physical one where experience, transparency, and inventory still seal the deal—or reveal the gaps—for better or worse.
Employment and Labor
- The US auto dealership industry employed 1.2 million people in 2022.
- New-car dealerships had 145,000 sales employees in 2022.
- Service technicians at franchised dealerships numbered 115,000 in 2022, facing a shortage of 30,000.
- Average annual salary for dealership salespersons was $62,000 in 2022.
- Parts and service departments employed 260,000 people at new-car dealers in 2022.
- Turnover rate for sales staff at dealerships averaged 72% in 2022.
- Dealership management positions saw a 15% vacancy rate in Q4 2022.
- Women represented 18% of the dealership workforce in sales roles in 2022.
- Average technician wage increased 8.2% to $28.50 per hour in 2022.
- Independent used-car dealers employed 150,000 people in 2021.
- Dealerships invested $1.2 billion in technician training programs in 2022.
- Fixed operations staff productivity was 1,200 labor hours per technician annually in 2022.
- 45% of dealership employees were over 45 years old in 2022.
- Recruiting costs per new hire at dealerships averaged $4,200 in 2022.
- Service advisor positions had a 25% turnover rate in 2022.
- Dealerships reported 10,000 open sales positions nationwide in early 2023.
- Average employee tenure at dealerships was 4.2 years in 2022.
- 32% of dealership technicians were certified in EV repair in 2022.
- F&I managers earned an average of $145,000 annually in 2022.
- Dealership service departments performed 250 million RO hours in 2022.
- 55% of dealerships offered remote work options for admin staff in 2022.
- Diversity hiring initiatives covered 40% of dealership groups in 2022.
- Technician training hours averaged 48 per employee annually in 2022.
- Sales per employee averaged $1.8 million in new-car dealerships 2022.
- 28% of workforce was under 30 years old in 2022.
- Benefits costs rose 7% to average $15,000 per employee in 2022.
- Parts counter staff turnover was 45% in 2022.
- General managers averaged 12 years experience in 2022.
- EV service training completed by 25% more technicians in 2022.
Employment and Labor Interpretation
The US auto dealership industry is a high-octane engine of 1.2 million jobs, currently sputtering through a chronic shortage of technicians and revolving-door sales staff, while simultaneously racing to invest billions into training its graying workforce for an electric future, all before the new-car smell wears off.
Inventory Management
- New-car dealership new vehicle inventory averaged 268 units per dealer in 2022.
- Used vehicle inventory days' supply at dealerships was 40 days in December 2022.
- Total new vehicle inventory at US dealerships reached 2.7 million units by end of 2022.
- Average used vehicle age in dealership inventory was 3.8 years in 2022.
- Dealerships turned used inventory 8.2 times per year on average in 2022.
- 65% of used vehicles in dealership inventory were SUVs or trucks in 2022.
- New vehicle inventory turnover rate was 4.1 times in 2022 for franchised dealers.
- Average acquisition cost per used vehicle rose to $27,500 in 2022.
- 22% of dealership new vehicle inventory was allocated EVs by end of 2022.
- Used vehicle inventory totaled 2.4 million units at retail dealerships in Q4 2022.
- Days' supply for trucks in dealership inventory was 35 days in 2022.
- 75% of dealerships reported inventory shortages for popular models in 2022.
- Average miles on used vehicles in inventory increased to 42,000 miles in 2022.
- Certified pre-owned inventory averaged 120 units per franchised dealer in 2022.
- New vehicle lot space utilization was 85% at average dealerships in 2022.
- Auction purchases accounted for 55% of used vehicle inventory acquisitions in 2022.
- Import vehicles made up 28% of new inventory at US dealerships in 2022.
- Average holding cost per unsold vehicle was $450 per day in 2022.
- 40% of used inventory was acquired through trade-ins in 2022.
- Used vehicle inventory per dealer averaged 320 units in 2022.
- Luxury new vehicle days' supply was 65 days in 2022.
- Trade-in volume contributed 1.8 million units to inventory in 2022.
- Average reconditioning cost per used vehicle was $2,100 in 2022.
- 18% of inventory was 2022 model year vehicles at year-end.
- Sedan inventory days' supply exceeded 50 days in 2022.
- Off-lease returns added 1.9 million units to wholesale in 2022.
- Average new vehicle time to move was 45 days in Q4 2022.
- 60% of dealers used AI for inventory pricing in 2022.
- Car inventory days' supply was 55 days vs. trucks at 32 days in 2022.
- Total wholesale auction attendance dropped 20% digitally in 2022.
- EV inventory averaged 15 units per dealer in late 2022.
Inventory Management Interpretation
The modern dealership is a high-stakes game of musical chairs where everyone is frantically buying and selling slightly used trucks while nervously eyeing the growing, expensive pile of electric cars in the corner.
Revenue and Profitability
- In 2022, new-car dealers in the United States generated a total revenue of $1.22 trillion, marking a 12% increase from the previous year.
- The average net profit margin for new-car dealerships in the US reached 5.2% in 2022, up from 4.8% in 2021.
- Used-vehicle departments at franchised new-car dealerships reported pretax profits of $16,611 per vehicle in 2022.
- Service and parts departments generated $135.9 billion in revenue for new-car dealers in 2022, with a profit margin of 13.5%.
- Finance and insurance (F&I) gross profit per new vehicle retailed averaged $2,611 in 2022 for US dealerships.
- Total new-car dealer revenue from new vehicle sales was $782.4 billion in 2022.
- Average pretax profit for independent used-car dealers was $1.2 million in 2021.
- New-car dealership gross profit per new vehicle sold averaged $3,767 in 2022.
- In 2022, the service labor rate at new-car dealerships averaged $139.44 per hour.
- F&I revenue per used vehicle retailed at new-car dealerships was $1,571 in 2022.
- Total pretax profits for new-car dealerships reached $52.2 billion in 2022.
- Used-vehicle sales revenue for new-car dealers was $304.3 billion in 2022.
- Average dealership revenue from service absorption was 102% in 2022 for top-performing US new-car dealers.
- Parts department gross margin averaged 47.2% for new-car dealerships in 2022.
- New-car dealers' total advertising expenses rose to $4.8 billion in 2022.
- In 2021, the US auto dealership industry contributed $1.1 trillion to the national GDP.
- Average net working capital per dealer was $12.4 million in 2022.
- Body shop gross profit margin for new-car dealers was 52.3% in 2022.
- Total revenue from wholesale vehicle sales at new-car dealerships was $22.1 billion in 2022.
- Average pretax profit margin for used-car operations at franchised dealers was 9.8% in 2022.
- New-car dealers invested $5.2 billion in digital advertising in 2022.
- Pretax profit from new vehicles per dealer averaged $4.1 million in 2022.
- Used vehicle gross profit margin was 11.5% for new-car dealers in 2022.
- Total F&I revenue for new-car dealers hit $19.8 billion in 2022.
- Service customer pay gross margin was 71% in 2022.
- Wholesale vehicle gross profit per unit was $1,800 in 2022.
- Average floorplan interest expense per dealer was $1.9 million in 2022.
- Dealership capital expenditures totaled $8.7 billion in 2022.
Revenue and Profitability Interpretation
While dealers may grumble about slim new car profits, a clever alchemy turns wrenches, used cars, and extended warranties into a $52.2 billion profit engine, proving the real money isn't in the metal you buy but in everything that comes after.
Vehicle Sales Volume
- New light-vehicle retail sales in the US totaled 13.8 million units in 2022.
- Franchised new-car dealers retailed 7.9 million new vehicles in 2022.
- Independent dealers sold 8.3 million used vehicles in 2022.
- Used-vehicle retail sales at franchised new-car dealerships reached 6.1 million units in 2022.
- Electric vehicle (EV) sales through dealerships grew 55% year-over-year to 254,000 units in Q4 2022.
- Total US new light-vehicle sales were 13.9 million in 2023, a 12.4% increase from 2022.
- Pickup trucks accounted for 20.1% of total new vehicle sales at dealerships in 2022.
- SUVs and crossovers represented 52.3% of new vehicle retail sales in the US in 2022.
- Average transaction price for new vehicles sold at dealerships was $48,257 in 2022.
- Franchised dealers sold 1.7 million used trucks and SUVs in 2022.
- Luxury vehicle sales at US dealerships increased 4% to 1.2 million units in 2022.
- Certified pre-owned (CPO) vehicle sales hit a record 2.5 million units through dealerships in 2022.
- New vehicle inventory at US dealerships averaged 52 days' supply in December 2022.
- Retail used-vehicle sales totaled 17.6 million units in 2022 across all dealership channels.
- Tesla vehicles accounted for 65% of all EV sales through dealership alternatives in 2022, but traditional dealers sold 35% of non-Tesla EVs.
- Compact cars made up 8.4% of new vehicle sales at dealerships in 2022.
- Mid-size sedans sales dropped to 1.1 million units at US dealerships in 2022.
- New vehicle sales volume increased 5% in Q4 2022 to 3.9 million units.
- Hybrid vehicle sales at dealerships rose 52% to 1.1 million units in 2022.
- Mass-market brand sales totaled 10.2 million units through dealerships in 2022.
- Ford F-Series led dealership sales with 650,000 units in 2022.
- Toyota RAV4 was second with 400,000 units sold at dealerships in 2022.
- Chevrolet Silverado sales reached 513,000 units in 2022.
- Ram Pickup sales were 468,000 units at dealerships in 2022.
- Honda CR-V sales hit 361,000 in 2022.
- Jeep Grand Cherokee sold 244,000 units in 2022.
- GMC Sierra sales totaled 183,000 in 2022.
- Overall used wholesale volume was 9.2 million units in 2022.
Vehicle Sales Volume Interpretation
While Americans are paying an average of nearly $50,000 apiece to overwhelmingly park SUVs and pickup trucks in their driveways, the electric revolution is quietly gaining traction in the background, hybrids are surging, and the used car lot remains the industry's bustling and indispensable backbone.
Sources & References
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