While headlines might declare traditional car dealerships obsolete, these eye-popping 2022 numbers—like a record-breaking $1.22 trillion in total revenue, $100.6 billion from service departments, and a soaring gross profit margin of 8.7% on new vehicles—paint a vivid picture of an industry that's not just surviving, but thriving and fundamentally transforming.
Key Takeaways
- In 2022, franchised new-car dealerships in the U.S. reported total gross revenue of $1.22 trillion, marking the highest on record
- U.S. auto dealerships achieved a gross profit margin of 8.7% on new vehicle sales in 2023, up from 6.9% in 2022
- The average net profit per new vehicle retailed by U.S. dealerships reached $1,959 in Q4 2023
- U.S. new-vehicle sales reached 13.9 million units in 2023, with dealerships retailing 89% of them
- Franchised dealerships sold 7.7 million new vehicles in 2022
- Used vehicle retail sales at U.S. dealerships totaled 16.8 million units in 2022
- U.S. consumers prefer dealerships for 78% of vehicle purchases in 2023 surveys
- 67% of car buyers research online before visiting dealerships in 2024
- Average age of car buyers at dealerships is 53 years old in 2023
- U.S. auto dealerships employed 1.2 million people in 2022
- Average dealership workforce size was 328 employees per franchised store in 2022
- Sales staff turnover rate at dealerships averaged 42% in 2023
- 84% of U.S. dealerships use digital retailing tools in 2024
- 62% of vehicle sales start online at dealership websites in 2023
- Dealerships invested $2.1 billion in digital advertising in 2022
The U.S. dealership industry posted record trillion-dollar revenue in 2022 while adapting to digital buyers.
Consumer Insights
- U.S. consumers prefer dealerships for 78% of vehicle purchases in 2023 surveys
- 67% of car buyers research online before visiting dealerships in 2024
- Average age of car buyers at dealerships is 53 years old in 2023
- 41% of buyers prioritize fuel economy when shopping at dealerships in 2023
- 73% of dealership customers use mobile devices for initial vehicle searches in 2024
- Millennial buyers represent 38% of dealership new car sales in 2023
- 62% of buyers walk away from dealerships due to poor online experience in 2023
- Women account for 52% of dealership research starts but 44% of purchases in 2024
- 55% of EV intenders prefer dealership test drives before buying in 2023
- Average dealership customer lifetime value is $58,000 over 4 transactions
- 48% of buyers under 40 want fully digital dealership buying in 2024
- Hispanic buyers grew to 22% of dealership sales volume in 2023
- 69% of dealership visitors negotiate price, averaging 7% off MSRP in 2023
- Gen Z represents 12% of dealership foot traffic but 18% of online inquiries in 2024
- 76% of loyal dealership customers return for service within 12 months
- 34% of buyers cite high interest rates as top barrier at dealerships in Q1 2024
- Truck buyers at dealerships are 65% male, averaging $65,000 household income in 2023
- 81% of dealership sales involve financing, with average loan term 68 months in 2023
- Online reservation usage at dealerships rose to 29% of appointments in 2024
- 57% of buyers prefer trade-ins at dealerships, valuing them 10% below market in 2023
- Repeat buyers loyalty rate at dealerships is 54% for service after purchase
- 45% of EV shoppers at dealerships cite range anxiety as concern in 2024
- Average household income for luxury dealership buyers is $152,000 in 2023
- 66% of dealership customers review online before visiting in Q1 2024
Consumer Insights Interpretation
While Gen Z might lurk online and your grandfather might still love a good haggle in the showroom, the modern dealership's path to profit is paved by mastering a digital-first, mobile-driven experience that converts a curious 53-year-old into a $58,000 loyalist before she even parks her fuel-efficient crossover.
Financial Metrics
- In 2022, franchised new-car dealerships in the U.S. reported total gross revenue of $1.22 trillion, marking the highest on record
- U.S. auto dealerships achieved a gross profit margin of 8.7% on new vehicle sales in 2023, up from 6.9% in 2022
- The average net profit per new vehicle retailed by U.S. dealerships reached $1,959 in Q4 2023
- Light truck sales accounted for 79.3% of new vehicle dealership gross profits in 2022, totaling $52.1 billion
- U.S. dealership service and parts departments generated $100.6 billion in gross revenue in 2022
- Franchise dealership F&I gross profit averaged $2,487 per new vehicle in 2023
- Total U.S. dealership advertising expenses rose to $5.2 billion in 2022, representing 1.1% of gross revenue
- Independent dealerships in the U.S. saw used vehicle gross profits of $13,959 per unit in Q1 2024
- New vehicle inventory expenses for U.S. dealerships averaged $1.8 million per store in 2023
- Dealerships reported $18.4 billion in total gross profit from used vehicles in 2022
- Average dealership pretax profit margin was 3.4% in 2022 for franchised new-car dealers
- U.S. dealerships' total capital expenditures reached $8.7 billion in 2022
- Gross revenue from new vehicles at U.S. dealerships hit $718.9 billion in 2022
- Used vehicle average selling price at dealerships was $28,710 in Q1 2024
- Dealership service labor gross profit margin stood at 68% in 2023
- Total U.S. franchised dealership revenue grew 11.7% year-over-year to $1.22 trillion in 2022
- Average new vehicle gross profit per unit was $1,959 for dealerships in 2023
- Dealerships' total used retail units sold generated $482 billion in revenue in 2022
- F&I penetration rate for new vehicles at dealerships was 104% in Q1 2024
- U.S. dealership pretax profits totaled $42 billion in 2022
- Average dealership employee productivity measured $456,000 in gross revenue per employee in 2022
- New light truck gross profit contributed $44.8 billion to dealership totals in 2022
- Dealerships' average floorplan interest expense per store was $285,000 in 2023
- Total parts gross revenue at U.S. dealerships was $52.5 billion in 2022
- Independent dealers' used vehicle gross margin was 10.5% in Q4 2023
- U.S. new-car dealerships' total assets averaged $32.6 million per store in 2022
- Service absorption rate at dealerships averaged 93% in 2023
- Gross profit from new cars reached $61 billion across U.S. dealerships in 2022
- Average selling speed for used vehicles at dealerships was 41 days in Q1 2024
- U.S. dealership total liabilities averaged $18.2 million per dealer in 2022
Financial Metrics Interpretation
While franchised dealerships celebrated a record-breaking $1.22 trillion in revenue, a closer look reveals their true survival tactic: they've brilliantly subsidized the razor-thin margins on new car sales by leaning into highly profitable service bays, lucrative F&I products, and an unquenchable public thirst for expensive trucks.
Sales Volume
- U.S. new-vehicle sales reached 13.9 million units in 2023, with dealerships retailing 89% of them
- Franchised dealerships sold 7.7 million new vehicles in 2022
- Used vehicle retail sales at U.S. dealerships totaled 16.8 million units in 2022
- New light truck sales by dealerships hit 8.1 million units in 2023
- Electric vehicle sales through dealerships grew 49% to 1.2 million units in 2023
- Average dealership sold 284 new vehicles per store in 2022
- Used retail units per independent dealership averaged 1,012 in 2022
- Pickup truck sales dominated dealership new sales at 2.9 million units in 2023
- Franchised dealers wholesaled 6.2 million used vehicles in 2022
- SUV/CUV sales reached 6.5 million units via U.S. dealerships in 2023
- Total light vehicle sales through dealerships were 15.5 million in 2023
- Average monthly new vehicle sales per dealership were 24 units in Q1 2024
- Certified pre-owned vehicle sales hit 1.7 million units in 2022
- Hybrid vehicle sales through dealerships increased 52% to 1.1 million in 2023
- Dealerships retailed 2.3 million used cars under 30 days supply in Q4 2023
- New car sales market share for Toyota dealerships was 14.5% in 2023
- Total dealership used vehicle sales volume was 17.5 million units projected for 2023
- Franchised dealership new vehicle sales days' supply averaged 68 days in Q1 2024
- Luxury vehicle sales at dealerships totaled 2.8 million units in 2022
- Average used vehicles sold per franchised dealer was 708 retail units in 2022
- Tesla direct sales bypassed dealerships for 654,000 units in 2023, impacting traditional volume
- Dealerships sold 4.1 million new sedans and small cars in 2022
- Off-road SUV sales grew 12% to 1.2 million units at dealerships in 2023
- Average new vehicle transaction time at dealerships was 16.6 hours in Q1 2024
- Independent dealership used sales volume increased 5% to 7.1 million in 2023
- Dealerships wholesaled 2.5 million auction units in Q4 2023
- 52% of new vehicle sales at dealerships were trucks in 2023
Sales Volume Interpretation
Despite Tesla's end-run around the showroom, Americans' enduring love affair with the dealership lot, from pickups to EVs, continues to drive a massive, if occasionally frustrating, machine that sold over 15 million vehicles last year and shows no sign of running out of gas.
Technology and Innovation
- 84% of U.S. dealerships use digital retailing tools in 2024
- 62% of vehicle sales start online at dealership websites in 2023
- Dealerships invested $2.1 billion in digital advertising in 2022
- CRM software penetration in dealerships reached 92% in 2023
- 45% of dealerships offer fully online purchase processes in 2024
- AI chatbots handle 28% of initial dealership inquiries in 2023
- Inventory management systems cover 98% of franchised dealerships in 2022
- Electric vehicle charging stations at 35% of dealerships in 2024
- Mobile app usage for service appointments at 51% of dealerships in 2023
- Blockchain for vehicle history adopted by 12% of dealerships in 2023
- Virtual reality tours implemented in 22% of luxury dealerships in 2024
- Data analytics ROI for dealership marketing averaged 4.5x in 2023
- 76% of dealerships use omnichannel retailing in 2024
- Robotic process automation in F&I at 18% of dealerships in 2023
- 360-degree vehicle imaging standard at 89% of dealership sites in 2022
- Cybersecurity incidents affected 14% of dealerships in 2023
- AR maintenance tools used by 29% of service departments in 2024
- Cloud-based DMS adoption at 81% of U.S. dealerships in 2023
- Predictive analytics for inventory reduced days supply by 15 days average in 2023
- Voice commerce trials in 8% of dealerships for 2024
- IoT sensors for service bays in 37% of dealerships in 2023
- Digital signage ROI at 3.2x for showroom traffic in 2023
- 55% of dealerships integrated APIs for third-party data in 2024
- Machine learning for pricing dynamic at 26% of used car dealerships in 2023
- 91% of dealerships have websites, with 68% mobile-optimized in 2022
- Biometric authentication for F&I docs piloted in 5% of dealerships in 2024
- 42% utilization of video walkarounds for remote sales in 2023
Technology and Innovation Interpretation
While car sales are still won by a firm handshake, the modern dealership has cleverly transformed into a digital octopus, meticulously collecting and guiding customers from first online click to final biometric signature.
Workforce Statistics
- U.S. auto dealerships employed 1.2 million people in 2022
- Average dealership workforce size was 328 employees per franchised store in 2022
- Sales staff turnover rate at dealerships averaged 42% in 2023
- Dealership technicians numbered 260,000 full-time equivalents in 2022
- Average dealership salesperson earned $139,000 total compensation in 2022
- 65% of dealership job openings were for technicians in 2023
- Parts department employees averaged 47 per franchised dealership in 2022
- Female employment in dealerships reached 18% of total workforce in 2023
- Service advisors averaged $125,000 annual pay at dealerships in 2022
- Dealership total payroll expenses were $82.5 billion in 2022
- Technician pay rose 12% to average $92,000 per year in 2023
- 72% of dealership managers have 10+ years experience in 2023
- Independent dealerships employed 290,000 people in 2022
- Service department staff turnover was 28% at dealerships in 2023
- Average training hours per dealership employee was 42 in 2022
- Hispanic workers comprise 24% of dealership workforce in 2023
- Dealership owners numbered 16,800 principals in 2022
- Finance managers earned average $225,000 at dealerships in 2022
- 55,000 new technician hires needed annually for dealerships through 2027
- Administrative staff averaged 52 per dealership in 2022
- Sales department headcount was 104 per average dealership in 2022
- Employee benefits costs averaged 28% of payroll at dealerships in 2023
- 41% technician shortage impacts 80% of U.S. dealerships in 2024
- Average dealership service writer compensation $118,000 in 2023
- Total dealership industry jobs grew 2.5% to 1.22 million in 2022
- 67% of dealerships report hiring challenges for skilled labor in 2023
Workforce Statistics Interpretation
Despite paying surprisingly well—especially for technicians who are desperately scarce and salespeople who often flee—the dealership industry thrives on a massive, experienced, yet perpetually revolving door of 1.2 million employees.
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