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- New-Car Dealership Employment Sets Record
New Report: New-Car Dealership Employment Sets Record in 2016
TYSONS, Va. (April 13, 2017)
- Employment, wages and payroll at U.S. new-car dealerships all continued to
rise in 2016, according to a new report released by the National Automobile
In 2016, new-car dealerships directly employed a
record 1,131,900 workers, a 2.4% increase from the previous year, according to
NADA Data 2016, the annual financial profile of new-car
“Total dealership employment has consistently risen every
year since the Great Recession,” said NADA Chief Economist Steven Szakaly. “In
addition, hundreds of thousands of other local jobs are dependent on
Employment and Payroll
a dealership employed 69 workers in 2016, up from 66 in 2015.
weekly earnings of dealership employees also increased, growing by 2.6% from
2015. Total annual compensation now averages $69,000 per employee, giving
dealership employees one of the highest average salaries of any industry.
Average annual payroll was $65 billion, up 4.9%, or $3.9 million per
Dealership Financial Trends
dealership sales revenue, including new- and used-car sales (including
F&I), parts, service and body shop was $995.6 billion in 2016, an increase
of 6.1% from 2015. The average per dealership was $59.6 million.
top-10 states in dealership sales in 2016 were California, Texas, Florida, New
York, Oklahoma, Pennsylvania, Illinois, Michigan, Ohio and New Jersey.
Average Dealership Profile
Despite rising auto sales
and back-to-back record sales in 2015 and 2016, net pretax profit at new-car
dealerships as a percent of total sales has remained flat, hovering at 2.5
percent for several years.
“The past seven years have been the longest
period of new-vehicle sales growth since the 1920s,” Szakaly added. “For 2017
we expect new light-vehicle sales to continue on a strong trend, ending another
year above 17 million.”
In addition to the Average Dealership Profile
section, NADA Data 2016 now includes a new expanded financial profile
section covering Domestic, Import, Luxury and Mass Market dealerships.
Service and Maintenance
New-car dealerships wrote 259
million customer repair orders in 2016, up 6.5% from the previous year. These
orders included service, warranty and recalls.
“More and more consumers
are choosing new-car dealerships for their service needs,” said Patrick Manzi,
NADA senior economist. “Express service, such oil changes, and non-warranty
repair orders at dealerships, on average, increased by 10.9% and 4.2%,
respectively, in 2016. This increase demonstrates that consumers value the
expertise of the highly-trained and factory-certified technicians employed at
Other highlights from NADA Data 2016
- The total number of new-car dealerships was 16,708, up 163
- A record 17,465,020 new cars and light trucks were
purchased or leased in 2016.
- The average selling price of a new
vehicle was $34,449, up 3% from 2015.
- The average selling price of a
used vehicle was $19,866, up 2.5% from 2015.
- New vehicles sold per
dealership on average was 1,045.
- Number of customers purchasing a new-
or used-vehicle service contract was 43.7%, up 1% from 2015.
dealerships sold 14,968,206 million used vehicles, which accounted for 37% of
all used vehicles retailed.
NADA Data 2016 was updated
with completely re-benchmarked data and methodologies. Revisions and expansions
within the Average Dealership Profile series influenced how dealership sales
were calculated. As a result, data and figures from previously released reports
will not be comparable to the 2016 report.
There are two versions of
NADA Data 2016. One is a general overview of the retail-auto industry,
with infographics that can be shared by print and broadcast news outlets as
well as on social media. The other, more detailed version looks at each
dealership department, employment and payroll, trends in dealership
advertising, as well as the entire retail-auto industry.
either version of NADA Data 2016, visit www.nada.org/nadadata.