The Latest Retail Automotive Industry Statistics Explained
Automobile dealerships in the U.S. accounted for $1.1 trillion in sales in 2020.
The statistic stating that automobile dealerships in the U.S. accounted for $1.1 trillion in sales in 2020 indicates the significant economic impact of the automotive industry within the country. This figure represents the total revenue generated by the sale of new and used vehicles, as well as related services, such as financing, maintenance, and insurance. The large sales volume highlights the importance of the automotive sector to the overall economy, as it contributes to employment, manufacturing, and consumer spending. Additionally, it suggests a high level of demand for automobiles in the U.S. market, which has implications for consumer behavior, industry trends, and economic growth.
The U.S. retail auto industry employed over 1.1 million people in 2020.
The statistic “The U.S. retail auto industry employed over 1.1 million people in 2020” indicates that in the United States, more than 1.1 million individuals were employed in various roles within the retail auto sector in the year 2020. This includes workers involved in selling vehicles, providing customer service, maintenance and repair services, financing, marketing, and other related activities. The sizeable employment figure highlights the significant contribution of the auto industry to the U.S. economy, both in terms of creating job opportunities and supporting consumer demand for vehicles. Additionally, the statistic suggests that the retail auto industry plays a crucial role in fostering economic growth and stability by providing employment opportunities to a large number of individuals across the country.
The average gross return from selling new vehicles for dealerships in the U.S. is about 6.5%.
The statistic indicates that, on average, dealerships in the United States make a 6.5% return on the gross sales of new vehicles. This means that for every dollar of revenue generated from selling new cars, dealerships typically retain 6.5 cents after accounting for the cost of acquiring and selling those vehicles. The gross return is a key measure of profitability in the automotive industry, reflecting the dealership’s ability to generate profit from their primary revenue source. A 6.5% average gross return suggests that the industry as a whole is able to operate profitably by earning a reasonable margin on new vehicle sales.
In 2020, about 14.5 million light vehicles were sold in the U.S.
In 2020, approximately 14.5 million light vehicles were sold in the United States. This statistic indicates the total number of cars, trucks, and SUVs purchased by consumers within the country during that year. The sales figure serves as a key metric for the automotive industry, reflecting consumer demand and market trends. It also provides insights into economic conditions, as vehicle sales are often linked to factors such as employment rates, income levels, and interest rates. The data point of 14.5 million units sold highlights the scale of the automotive market in the U.S. for that particular year, influencing various stakeholders such as automakers, dealerships, and policymakers.
More than 80% of cars sold in the U.S. in 2020 were used vehicles.
The statistic ‘More than 80% of cars sold in the U.S. in 2020 were used vehicles’ indicates that a significant majority of car sales in the United States during 2020 involved pre-owned or second-hand vehicles as opposed to brand new cars. This trend suggests a strong preference for used cars among American consumers, potentially driven by factors such as cost savings, a wider selection of models, and the perceived value of buying a slightly older but established vehicle. The high proportion of used car sales in the U.S. market in 2020 highlights the importance of the pre-owned car sector in meeting the diverse needs and preferences of customers seeking automotive solutions.
There are around 16,741 franchised car dealers in the United States.
This statistic indicates that there are approximately 16,741 car dealerships operating under franchise agreements in the United States. Franchised car dealers are businesses that operate under a license from an automaker or manufacturer to sell their vehicles, parts, and services. These dealerships are essential components of the automotive industry, providing consumers with access to a wide selection of new and used vehicles, as well as maintenance and repair services. The sheer number of franchised car dealerships highlights the competitive nature of the automotive market in the U.S. and the significance of these establishments in facilitating the buying and selling of vehicles across the country.
Over half (52%) of the average dealer’s sales in the U.S. came from used cars and trucks in 2019.
The statistic “Over half (52%) of the average dealer’s sales in the U.S. came from used cars and trucks in 2019” reveals that a significant portion of sales revenue generated by typical car dealerships in the United States during 2019 was derived from the sale of pre-owned vehicles. Specifically, more than half of the total sales volume of these dealerships can be attributed to the transactions involving used cars and trucks. This statistic highlights the importance of the used car market to the overall performance and profitability of automotive dealers in the U.S., indicating a strong demand for second-hand vehicles among consumers and underscoring the role of pre-owned sales in the automotive industry’s revenue stream.
In 2019, U.S. light trucks accounted for 72.1% of auto sales.
The statistic “In 2019, U.S. light trucks accounted for 72.1% of auto sales” indicates that a significant portion of the total auto sales in the United States that year were comprised of light trucks. Light trucks refer to vehicles such as pickup trucks, SUVs, and vans. The fact that they made up 72.1% of all auto sales suggests that they were a dominant category in the market at that time, likely driven by factors such as consumer preferences for larger and more versatile vehicles, as well as trends in the automotive industry favoring the production and sale of light trucks. This statistic highlights the popularity and demand for light trucks within the U.S. auto market in 2019.
In 2020, the average age of passenger cars and light trucks in the U.S. reached 11.9 years.
The statistic that in 2020, the average age of passenger cars and light trucks in the U.S. reached 11.9 years indicates that the vehicles on the roads in the United States are getting older on average. This means that cars and light trucks are being driven for a longer period before being replaced or taken out of service, likely due to improvements in technology, durability, and maintenance practices. The increasing average age of vehicles can have implications for various aspects of the automotive industry, including aftermarket parts sales, vehicle safety, and environmental impact due to potentially higher emissions from older vehicles.
27% of automobile consumers in US reportedly made their acquisitions online in 2020.
The statistic reveals that in 2020, approximately 27% of automobile consumers in the United States chose to make their purchases online. This suggests a significant shift in consumer behavior towards digital platforms for buying vehicles. Factors such as convenience, safety, and the increasing availability of online resources and services may have contributed to this trend. The data highlights the growing importance of e-commerce channels in the automotive industry and underscores the need for dealerships and manufacturers to adapt to evolving consumer preferences by enhancing their online presence and digital customer experience strategies.
The profit margins in automotive retail are on an average, between 2% and 3%.
The statistic stating that the profit margins in automotive retail are on average between 2% and 3% indicates that, as a general trend, automotive retailers typically earn profits that amount to 2% to 3% of their total revenue. This range serves as a benchmark for understanding the financial performance of companies within the automotive retail industry. Profit margins are a key metric in assessing the efficiency and profitability of a business, reflecting the ability of the company to generate profits relative to its sales. The tight profit margins in automotive retail signal a highly competitive market environment where businesses must closely manage expenses and pricing strategies to maintain profitability. Understanding and monitoring profit margins can help industry stakeholders make informed decisions regarding pricing, cost control, and overall financial health.
In 2021, online vehicle buying increased by 35%.
The statistic ‘In 2021, online vehicle buying increased by 35%’ indicates that the number of purchases made for vehicles through online platforms experienced a significant rise by 35% compared to the previous year. This indicates a growing trend in consumers’ preference for purchasing vehicles online rather than through traditional brick-and-mortar dealerships. The 35% increase suggests a substantial shift towards digital platforms for vehicle transactions, potentially influenced by factors such as the convenience, safety, and accessibility offered by online buying options. This statistic showcases the evolving consumer behavior and the increasing importance of digital channels in the automotive industry.
61% of car buyers report spending more time researching online than offline.
The statistic that 61% of car buyers report spending more time researching online than offline indicates a significant shift in consumer behavior towards digital platforms for gathering information before making a purchase decision. This suggests that the majority of car buyers are relying heavily on online resources such as websites, reviews, and online marketplaces to inform themselves about available options, pricing, and features, potentially impacting traditional offline sources like dealerships, physical advertisements, and word-of-mouth recommendations. The rise of internet connectivity and access to information online has transformed the way consumers approach purchasing decisions, highlighting the importance of a strong online presence and digital marketing strategies for businesses in the automotive industry to effectively reach and engage with potential customers.
The total number of light vehicles sold in the U.S. in 2021 is anticipated to reach 15.8 million units.
The statistic that the total number of light vehicles sold in the U.S. in 2021 is anticipated to reach 15.8 million units represents a projected figure for the upcoming year based on current market trends and forecasts. This statistic serves as an estimate of the demand for light vehicles in the U.S. for the coming year and provides valuable insight for stakeholders in the automotive industry, including manufacturers, dealers, and policymakers. Factors such as economic conditions, consumer preferences, and industry trends will likely influence whether the actual number of vehicle sales aligns with this projection, making it essential to monitor market dynamics throughout the year to assess the accuracy of this forecast.
As of 2019, franchised car dealerships employed more than 1.1 million people in the U.S.
The statistic states that in 2019, franchised car dealerships in the United States collectively provided employment opportunities to over 1.1 million individuals. This means that the automotive industry, specifically the franchise model, played a significant role in the labor market, supporting a large workforce. Car dealerships serve as vital economic hubs, not only in terms of vehicle sales and services but also by creating job opportunities for a substantial number of people. The sheer scale of employment in this sector indicates its importance in driving economic activity and providing livelihoods for a considerable portion of the population.
Approximately 30,000 independent auto dealers exist in the U.S.
The statistic stating that there are approximately 30,000 independent auto dealers in the U.S. suggests that there is a significant presence of independently operated car dealerships in the country. These dealerships are not affiliated with specific car manufacturers or corporate entities, and they often operate as small businesses with their own unique business models and customer bases. The large number of independent auto dealers indicates a diverse market landscape for consumers looking to purchase vehicles, offering a wide range of choices in terms of brands, pricing, and services. This statistic underscores the competitive nature of the automotive industry and the importance of independent dealers in providing options and driving innovation in the market.
U.S. auto dealerships’ service and parts sales amounted to $120 billion in 2020.
The statistic ‘U.S. auto dealerships’ service and parts sales amounted to $120 billion in 2020′ indicates the total revenue generated by servicing and selling parts for vehicles at dealerships across the United States in the year 2020. This figure captures the significant economic activity within the auto industry and highlights the importance of service and parts sales as a major revenue stream for dealerships. The $120 billion in sales reflects the scale of demand for maintenance and replacement parts by vehicle owners, as well as the business opportunities for dealerships to provide these services. This statistic also serves as a key indicator of the health and performance of the automotive aftermarket sector within the U.S. economy.
Dealerships in the U.S. wrote more than 310 million repair orders, with service and parts sales totaling over $116 billion in 2019.
The statistic indicates that in 2019, dealerships in the United States collectively processed a significant volume of repair orders, totaling more than 310 million, generating substantial revenue exceeding $116 billion from service and parts sales. This statistic highlights the considerable size and economic significance of the automotive service industry in the U.S., demonstrating the demand for maintenance and repair services by vehicle owners. The data suggests a robust market for dealership services, reflecting the ongoing need for automotive servicing and parts replacement in the country.
Conclusion
Through analyzing the retail automotive industry statistics, it is evident that the sector plays a significant role in the economy. The data highlights the trends, challenges, and opportunities present in the industry, aiding stakeholders in making informed decisions and strategies for the future. Understanding these statistics is crucial for staying competitive and thriving in the ever-evolving automotive market.
References
0. – https://www.www.nada.org
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2. – https://www.www.statista.com
3. – https://www.www.coxautoinc.com
4. – https://www.hedgescompany.com
5. – https://www.www.mckinsey.com
6. – https://www.www.accenture.com
