ANNUAL FINANCIAL PROFILE

OF AMERICAS FRANCHISED
NEW- CAR DE ALERSHIPS

2014
www.nada.org/nadadata

Overview
NADA Data 2014 the annual financial profile of
Americas franchised new-car dealershipsshows a robust
and highly competitive industry that is helping boost the
U.S. economy. Last year, for example, dealerships employed
more than 1 million people in their communities.
Dealerships sold or leased more than 15.5 million new
cars and light trucks in 2013, up 7.5 percent from the year
before, along with 351,737 new medium- and heavy-duty
trucks, up 1.7 percent.
Yet dealership profitability remained flat. Going forward, fierce price competitionwhether from online
research by consumers, the vast network of competing
dealers or the many new compelling vehicles rolling into
showroomswill continue to dominate an industry with
slim retail margins. While dealers will stay focused on
improving customer service and controlling operating costs,
expect net profitability before tax at dealerships to remain
unchanged at 2.2 percent in 2014.
At the same time, consumer financing will remain
an integral part of the auto-retail experience for car buy-

ers. Most shoppers continue

to finance vehicles through
new-car dealerships because
of the competitive finance
rates offered.
And service work, whether
for warranty repairs or a quick
oil change, is still an integral
part of dealership customer
Steven Szakaly
service and operations.
Chief Economist, NADA
The demand for used
vehicles is also very strong. In 2013, used-vehicle prices
were better than expected, andas has happened every
year since the recessionthere was a clear shortage of latemodel used vehicles.
All in all, 2013 was a year of growth leading to a year
of opportunity in 2014. With a stronger housing market,
improved job prospects and continued low interest rates
to bolster auto sales further, NADA forecasts new-car and
light-truck sales to reach 16.4 million in 2014.

Contents
Average Dealership Profile............................... 3

The Used-Vehicle Department........................ 11

NADA Optimism Index...................................... 4

Service, Parts and Body Shop........................ 12

New-Vehicle Dealerships.................................. 5

Employment and Payroll................................. 14

Total Dealership Sales Dollars.......................... 6

Vehicles in Operation and Scrappage.............. 16

Dealership Financial Trends............................. 7

Advertising and the Dealership....................... 18

The New-Vehicle Department............................ 8

New-Truck Dealerships.................................. 19

F&I, Service Contracts................................... 10

NADA DATA 2014nada.org

Average Dealership Profile

Sales for franchised new-car dealerships reached 15.5 million units in 20131. Total dealership revenue by departmentwhich includes sales of new and used vehicles, as well
as service and partsreached $730 billion, an 8.8 percent
increase from the previous year. For the average dealership,
sales in the new-car department were up 10.5 percent and
exceeded sales in the used-car department, which was up 7.3
percent. Net pretax profit was an average of $923,248.

TOTAL GROSS AND EXPENSE

Total dealership gross margins fell further in 2013 to
13.4 percent of total dealership sales from 13.7 percent

the previous year. Total expenses were up 5.4 percent,

but declined as a percentage of sales to 11.2 percent from
11.5 percent. Advertising expenses on a per-vehicle basis
decreased to $616 from $621. Floor-plan expenses were a
negative $90 per new vehicle sold.

TOTAL DEALERSHIP PROFITS

In 2013, total dealership net profit before tax as a percent
of sales was 2.2 percent, which was unchanged from the
previous year.
1

Data source: WardsAuto

Average dealership profile

% change

2009 2010 2011 2012 2013
2012-2013
Total dealership sales

$26,645,303

$30,941,801

$35,128,692

$37,993,989

$41,333,975

8.8%

Total dealership gross

$4,060,649

$4,498,949

$5,047,340

$5,216,294

$5,539,675

6.2%

15.2%

14.5%

14.4%

13.7%

13.4%

As % of total sales

Total dealership expense

$3,658,560

$3,863,023

$4,252,805

$4,380,646

$4,616,427

As % of total sales

13.7%

12.5%

12.1%

11.5%

11.2%

Net profit before taxes

$402,090

$635,926

$794,536

$835,649

$923,248

1.5%

2.1%

2.3%

2.2%

2.2%

$187,454

$291,575

$353,284

$363,959

$396,414

8.9%

$13,937,579

$16,352,208

$19,114,448

$21,361,580

$23,599,234

10.5%

52.3%

52.8%

54.4%

56.2%

57.1%

$8,537,426

$10,244,937

$11,369,595

$12,063,177

$12,945,520

As % of total sales

(Net pretax profit in

constant 1982 dollars)
New-vehicle department sales

As % of total sales

Used-vehicle department sales

As % of total sales

5.4%
10.5%

7.3%

32.0%

33.1%

32.4%

31.8%

31.3%

$4,170,298

$4,344,656

$4,644,649

$4,569,233

$4,789,222

15.7%

14.0%

13.2%

12.0%

11.6%

New-vehicle average selling price

$28,966

$29,793

$30,659

$30,910

$31,762

2.8%

Used-vehicle average selling price

$14,976

$16,474

$17,267

$17,547

$18,111

3.2%

$2,235,369

$2,563,220

$2,838,652

$3,005,725

$3,181,198

5.8%

18.0%

24.8%

28.0%

27.8%

29.0%

Service and parts sales

As % of total sales

Average net worth (as of 12/31)

Net profit as % of net worth
Source: NADA

NADA DATA 2014nada.org

4.8%

NADA Optimism Index

According to the latest quarterly survey1, the NADA Dealer
Optimism Index value was 156 at the end of the 2013,
down from 161 the previous year but higher than the average value for the period 2003-2013, which was 134.
This survey also showed that more than half (52.4
percent) of franchised new-car dealers expect their profits

to rise in 2014. This continues a trend from the past few

years where most dealers expect greater profits, while those
dealers who expect reduced profits remain the smallest
group of survey respondents.
1

The latest quarterly survey data is for Q4 2013.

Optimism index vs. new-vehicle sales

200

100

NADA Optimism Index

New-vehicle sales

0
2004

2005

2006

Source: NADA

NADA DATA 2014nada.org

2007

2008

2009

2010

2011

2012

2013

New-Vehicle Dealerships
In 2013, the number of franchised
new-car dealerships continued to grow,
leading to a net increase of 30 stores.
Annual sales volume was greatest for
those dealerships selling 150-399 new
vehicles (or units), followed by stores
selling 0-149 units and then those
selling 750-plus units. Dealerships
selling 400-749 units had the lowest
annual sales volume.
As in the previous year, there was
a decline in the number of dealerships
selling 0-149 units and also a decline
in the number of stores selling 150-399
units. There was also a rise in the number of dealerships with sales volumes of
400-749 units and those selling 750plus units.

New-vehicle dealerships, by state in 2013

1

Alabama 294
Alaska 34
Arizona 245
Arkansas 218
California 1,377
Colorado 258
Connecticut 269
Delaware 54
D.C. 1
Florida 852
Georgia 512
Hawaii 69
Idaho 110
Illinois 752
Indiana 424
Iowa 329
Kansas 233
Kentucky 255
Louisiana 290
Maine 124
Maryland 306
Massachusetts 400
Michigan 637
Minnesota 358
Mississippi 195
Missouri 414
Source: NADA

Montana 113
Nebraska 182
Nevada 103
142
New Hampshire
New Jersey
471
New Mexico
119
888
New York
North Carolina
589
North Dakota
90
Ohio 760
Oklahoma 275
Oregon 239
Pennsylvania 936
51
Rhode Island
262
South Carolina
South Dakota
101
Tennessee 345
Texas 1,210
Utah 141
Vermont 88
Virginia 500
Washington 330
144
West Virginia
Wisconsin 513
Wyoming 63
17,665
Total U.S.
Including District of Columbia (D.C.).

Number of dealerships, by volume of new-unit sales, 2013

Number of dealerships
8,000

4,000

NADA DATA 2014nada.org

0-149
Annual new-unit sales

150-399

400-749

750+
Source: NADA

Total Dealership Sales Dollars

The dollar sales per franchised newcar dealership increased by 8.8 percent in 2013 and the dollar sales for
all franchised new-car dealerships
increased by 9 percent.
The new-vehicle department had
the largest share of total dealership
sales dollars (57.1 percent), followed
by the used-vehicle depa rtment
(31.3 percent) and service and parts
(11.6 percent).
Arizona had the highest dollar
sales per dealership of all states, while
California had the highest dollar sales
for all dealerships.

Total sales of new-vehicle dealerships

$ billions
800

$ millions
50

All dealerships (left scale)

Average per dealership (right scale)

35

600

400

2004

2005

2006

2007

2008

2009

2010

2011

2012

2013

20

Source: NADA and U.S. Department of Commerce

Share of total dealership

salesdollars, 2013
By department

Service
and parts
11.6%
Used vehicles
31.3%

New vehicles
57.1%

Source: NADA

NADA DATA 2014nada.org

Total sales by state, 2013

Average per

All dealerships
dealership
State
(millions) (thousands)
Alabama $10,165 $34,576
Alaska
$1,287 $37,852
Arizona $17,623 $71,932
Arkansas $6,431 $29,498
California $86,985 $63,170
Colorado $13,576 $52,621
Connecticut $9,471 $35,207
Delaware $2,565 $47,491
Florida
$51,537 $60,490
Georgia $22,147 $43,256
Hawaii
$2,029 $29,400
$3,232 $29,379
Idaho
Illinois
$28,356 $37,708
Indiana $13,110 $30,920
Iowa
$8,011 $24,351
$6,110 $26,225
Kansas
Kentucky $7,305 $28,648
Louisiana $10,020 $34,553
$3,303 $26,637
Maine
Maryland $13,983 $45,696
$41,798
Massachusetts $16,719
Michigan $15,102 $23,708
Minnesota $10,222 $28,552
Mississippi $5,424 $27,816
Missouri $13,864 $33,489
Source: NADA

Average per

All dealerships
dealership
State
(millions) (thousands)
Montana
$2,915
$25,792
Nebraska
$5,264
$28,921
Nevada
$5,252
$50,990
New Hampshire $4,720
$33,239
$24,180
$51,337
New Jersey
New Mexico
$3,831
$32,189
New York
$41,943
$47,233
North Carolina
$21,484
$36,475
North Dakota
$3,201
$35,570
Ohio
$26,893
$35,385
Oklahoma
$18,674
$67,905
Oregon
$7,794
$32,611
Pennsylvania
$28,437
$30,381
Rhode Island
$2,045
$40,107
South Carolina
$9,347
$35,675
South Dakota
$2,788
$27,603
Tennessee
$14,176
$41,090
Texas
$70,832
$58,539
Utah
$6,476
$45,927
Vermont
$1,801
$20,470
Virginia
$18,033
$36,066
Washington
$13,267
$40,203
West Virginia
$3,916
$27,193
Wisconsin
$12,872
$25,092
Wyoming
$1,365
$21,671
Total U.S.
$730,082
$41,329

Dealership Financial Trends

For the third year in a row, net profit in the new-vehicle department
remained positive in 2013. During
2006-2010, net profit in the newvehicle department was negative
each year. But while net profit in the
new-vehicle department was positive
in 2013, the profit per-new-vehicle
retailed fell to $69 from $111 the previous year.
For the fifth year in a row, net profit
in the used-vehicle department was
positive in 2013. The profit per-usedvehicle retailed increased to $254 from
$194 the previous year.
Total service and parts profits
were were up 6.8 percent in 2013.
During 2003-2013, net profit in the
service and parts department has
been higher than in the new- and
used-vehicle departments.

New-vehicle department net profit

2013
Source: NADA

Used-vehicle department net profit

Average dealership, in thousands of dollars, including F&I
$200

100

0
-10

2004

2005

2006

2007

2008

2009

2010

2011

2012

2013

2010

2011

2012

2013

Source: NADA

Service and parts department net profit

Average dealership, in thousands of dollars
$500

250

NADA DATA 2014nada.org

2004

Source: NADA

2005

2006

2007

2008

2009

The New-Vehicle Department

New-vehicle sales were 15.5 million
units in 2013. The gross margin on
new-vehicle sales continued downward,
falling to 3.8 percent in 2013 from 4.2
percent the previous year.
New-car sales were up 4.7 percent
from the previous year and comprised 48.8 percent of total new-vehicle sales. Sales of new light trucks
increased 10.3 percent and comprised
51.2 percent of total vehicle sales.
Overall, sales of new cars and light
trucks were up 7.5 percent from the
previous year.
Domestic inventory rose from
62 to 66 days supply, while import
inventory increased from 52 to 58
days supply.
In 2013, the average selling price
of a new vehicle, including accessories
and options, rose by 2.8 percent.

Gross margin as percentage

ofsellingprice

New-vehicle inventories and days supply

Inventory (in millions)
4.0

4.5

2013

Source: NADA

Domestic

2.0

60

NADA DATA 2014nada.org

Import

Domestic

Import
0

400
2004

2013

Source: WardsAuto and NADA

2004

2013

Source: WardsAuto and NADA

New-vehicle sales, by month

2013
Actual

2013 SAAR1
(in millions)

2012
Actual

2012 SAAR1
% change
(in millions) 2012 to 2013

910,190 14.1

14.2%

February 1,188,262 15.3 1,145,822 15.0

3.7%

March

1,448,014 15.2 1,400,131 14.3

3.4%

April

1,279,690 14.9 1,181,224 14.4

8.3%

May

1,436,771 15.2 1,330,101 13.7

8.0%

June

1,398,721 15.9 1,281,266 14.1

9.2%

July

1,309,997 15.6 1,149,612 14.3

14.0%

August 1,498,540 16.0 1,280,204 14.5

17.1%

September
1,133,580 15.2 1,183,913 14.9

-4.3%

October 1,201,341 15.2 1,087,607 14.2

10.5%

November
1,238,377 16.3 1,139,930 15.5

8.6%

December
1,352,330 15.3 1,351,789 15.3

0.0%

Full Year
15,524,824 15.5 14,441,789 14.4

7.5%

Source: WardsAuto

2004

Total

January 1,039,201 15.2

New vehicles retailed

6.0%

3.0

Days supply
80

Seasonally adjusted annual rate

Total new light-vehicle sales rose by 7.5 percent in 2013.

New light-duty vehicle sales, by year

Total Light-duty

Light-duty light-duty trucks
Year
New cars
trucks
vehicles
as % of total
2004

7,505,900 9,360,600 16,866,500 55.5%

2005

7,666,700 9,278,300 16,945,000 54.8%

2006

7,780,800 8,721,000 16,502,700 52.8%

2007

7,618,400 8,470,900 16,089,300 52.6%

2008

6,813,550 6,381,050 13,194,600 48.4%

2009

5,456,300 4,945,400 10,401,700 47.5%

2010

5,635,400 5,919,100 11,554,500 51.2%

2011

6,089,300 6,644,900 12,734,200 52.2%

2012

7,242,800 7,199,000 14,441,800 49.8%

2013

7,582,500 7,942,300 15,524,800 51.2%

Source: WardsAuto

Number of new vehicles sold

and selling price


Year

New vehicles
sold per
dealership

Average
retail
selling price

2004 779 28,050

2005 788 28,400
2006 778 28,450
2007 775 28,800
2008 659 28,350
2009 563 28,966
2010 653 29,793
2011 726 30,659
2012 819 30,910
2013 879 31,762
Source: NADA

New-vehicle sales and market share, by manufacturer

General
Other
Year
Chrysler Ford Motors Toyota Honda Nissan
Volkswagen
imports Total

2,206,000 3,271,100
4,657,400
2,060,050
1,394,400
855,000
334,050
2,088,500 16,866,500
2004

13.08% 19.39% 27.61% 12.21% 8.27% 5.07% 1.98% 12.38%

2,304,900 3,106,900
4,456,800
2,260,300
1,462,500
1,076,900
307,250
1,969,450 16,945,000
2005

13.60% 18.34% 26.30% 13.34% 8.63% 6.36% 1.81% 11.62%

2,142,500 2,848,100
4,067,600
2,542,500
1,509,400
1,019,500
325,300
2,047,900 16,502,700
2006

12.98% 17.26% 24.65% 15.41% 9.15% 6.18% 1.97% 12.41%

2,076,100 2,502,000
3,824,550
2,620,800
1,551,550
1,068,500
324,050
2,121,750 16,089,300
2007

12.90% 15.55% 23.77% 16.29% 9.64% 6.64% 2.01% 13.19%

1,447,750 1,942,050
2,955,900
2,217,700
1,428,800
951,450
310,900
1,940,050 13,194,600
2008

10.97% 14.72% 22.40% 16.81% 10.83% 7.21% 2.36% 14.70%

927,200 1,656,100
2,072,200
1,770,200
1,150,800
770,100
296,200
1,758,900 10,401,700
2009

8.91% 15.92% 19.92% 17.02% 11.06% 7.40% 2.85% 16.91%

1,079,700 1,905,400
2,211,300
1,763,600
1,230,500
908,600
358,500
2,096,500 11,554,100
2010

9.34% 16.49% 19.14% 15.26% 10.65% 7.86% 3.10% 18.15%

1,361,600 2,110,800
2,503,800
1,644,700
1,147,300
1,042,500
442,000
2,481,500 12,734,200
2011

10.69% 16.58% 19.66% 12.92% 9.01% 8.19% 3.47% 19.49%

1,641,500 2,205,500 2,595,700 2,082,500 1,422,800 1,141,700 438,100 2,912,260
14,440,060
2012

11.37% 15.27% 17.98% 14.42% 9.85% 7.91% 3.03% 20.17%

1,789,500 2,435,300 2,786,100 2,236,000 1,525,300 1,248,400 407,700 3,096,500
15,524,800
2013

11.53% 15.69% 17.95% 14.40% 9.82% 8.04% 2.63% 19.95%
1,697,675 2,398,325 3,213,135 2,119,835 1,382,335 1,008,265 354,405 2,251,331
14,425,296
10-Year
Average
11.8% 16.6% 22.3% 14.7% 9.6% 7.0% 2.5% 15.6%
Source: WardsAuto

NADA DATA 2014nada.org

F&I, Service Contracts

Aftermarket income at new-car dealerships rose slightly in 2013.
Combined sales from F&I, service
contracts and other products accounted for 38.8 percent of gross profit
in the new- and used-vehicle departments in 2013, up from 36.9 percent
the previous year.
F&I sales accounted for 22.8 percent of gross profit in the new- and
used-vehicle departments in 2013,
up from 21.3 percent; and sales from
service contracts and other products
accounted for 16 percent of gross
profit in the new- and used-vehicle
departments in 2013, up 0.4 percentage points.
New-vehicle service contract penetration rates declined slightly by 0.2
percentage points in 2013, while usedvehicle service contract penetration
rates declined by 1.5 percentage points.

Aftermarket income
As % of new- and used-vehicle department gross profit
40%

Total

Service contract and other

20

Finance and insurance

2004

2005

2006

2007

2008

2009

2010

2011

2012

Source: NADA

Service contract penetration rates

As % of new vehicles retailed
45%

35

25

2004

Source: NADA

10

NADA DATA 2014nada.org

2005

2006

2007

2008

2009

2010

2011

2012

2013

2013

The Used-Vehicle Department

Of the 17.4 million used vehicles sold
by franchised new-car dealers in 2013,
9.9 million were retailed and 7.5 million were wholesaled.
Used-vehicle sales were up 1.7 percentwith retail sales up 5.6 percent,
and wholesale sales down 3 percent.
The retail price for the average used
vehicle was $18,111, up 3.2 percent
from $17,547. Franchised new-car
dealers obtained 66 percent of these
used units from trade-ins, 25 percent
from auctions and 8 percent from
street purchases and other sources.

Used-vehicle sales by new-vehicle dealerships

10-Year Average
Retail. . . . . . . . . . . 10.17
Wholesale. . . . . . . . . 7.07
Total. . . . . . . . . . . . 17.25

In millions
20
Total

Wholesale

10

Retail

0
2004

2005

2006

2007

2008

2009

2010

2011

2013

2012

Source: NADA

Sources of used vehicles

retailed by dealerships, 2013

Average retail selling price of used vehicles

retailed by new-light dealerships, 2013
$19,000

Other
3%
Auction
purchase
25%
Street
purchase 5%

Trade-in on
new vehicle
41%

16,500

Trade-in on
used vehicle
25%
Source: NADA

14,000
2004
Source: NADA

11

NADA DATA 2014nada.org

2005

2006

2007

2008

2009

2010

2011

2012

2013

Service, Parts and Body Shop

Total sales for service, parts and the
body shop was $84.6 billion in 2013,
up 5 percent from the previous year.
This is the third consecutive year that
sales for service, parts and the body
shop exceeded $80 billion.
Warranty work performed by franchised new-car dealers was $14.4 billion
in service and partsall at no cost to
the customer.
The percentage of dealerships with
on-site body shops increased to 36
percent from 34 percent the previous
year. Total body-shop work for dealerships rose to $7 billion from $6.8
billion the previous year.

Dealerships total service and parts sales, 2013

In billions of dollars

Service labor sales

$20

10

Customer
mechanical

Customer
body

Warranty

Sublet

Internal

Other

Parts sales
$20

10

Customer
mechanical

Customer
body

Wholesale

Counter

Warranty

Internal

Other

Source: NADA

Profile of dealerships service and parts operations, 2013

Total service and parts sales
Total gross profit as percent of service and parts sales

All dealers
$84.59 billion

46.03%
6.09%

Total number of repair orders written

14,002

Total service and parts sales per customer repair order

$250

Total service and parts sales per warranty repair order

$236

247 million

Number of technicians (including body)

15

Number of service bays (excluding body)

20

353,260

$309,498

$5.47 billion

Average customer mechanical labor rate

Source: NADA

NADA DATA 2014nada.org

$4,789,222

Total net profit as percent of service and parts sales

Total parts inventory

12

Average dealership

$101

264,945

Warranty work performed by franchised new-car dealers in 2013

was $14.4 billion in service and partsall at no cost to the customer.

Dealerships total service and parts sales

Dealerships service
and parts sales, 2013

In billions of dollars
$90

In billions of dollars
Service labor sales
Customer Mechanical
$15.82
Customer Body
3.93
Warranty 6.84
Sublet 2.65
Internal 6.72
Other 1.48
Total service labor

80

70

$37.45

Parts sales
Customer Mechanical
$13.33
Customer Body
3.10
Wholesale 12.56
Counter 2.57
Warranty 7.58
Internal 4.48
Other 3.52
2004

2005

2006

2007

2008

2009

2010

2011

2012

2013

Source: NADA

Total parts

$47.15

Total service and parts

$84.59

Source: NADA

Total dealership body shop sales

Dealerships operating
on-site body shops

In billions of dollars
$11

Percent of total dealership population

50%

40

2004

2005

2006

2007

2008

Source: NADA

13

NADA DATA 2014nada.org

2009

2010

2011

2012

2013

30

2004

Source: NADA

2013

Employment and Payroll

In 2013, total dealership employment
reached 1,008,800 people up 3.4 percent from 2012; the average dealership in operation employed 57 people
in 2013 up from 55 people during the
previous year.
The number and type of employees vary significantly among dealerships depending on store characteristics such as size, location, makes handled, and distribution of sales among
departments. The makeup of total
dealership employment in 2013 was:

Estimated number of employees in new-car dealerships

In thousands
1,200

60

1,000

50

Total of all dealerships (left scale)

Average number per dealership (right scale)
30

800
2004

Sales Staff.............................................. 207,945

Service Center....................................... 262,896
Managers & Office Staff.......................... 236,130
Other....................................................... 301,829
Total..................................................... 1,008,800
The average dealership in 2013
had an annual payroll of $3 million. The total payroll for all dealerships combined was $53.7 billion.
Dealerships provided, on average, just
over 12 percent of total retail payroll
in their respective states.

2005

2006

2007

NADA DATA 2014nada.org

2009

2010

2011

2012

2013

Source: NADA and U.S. Bureau of Labor Statistics

Estimated number of new-car dealership

employees in 2013, by state

Total number Average number
State
(all dealers) (per dealership)
Alabama 14,016 48
2,047 60
Alaska
Arizona 24,088 98
Arkansas 8,421 39
California 110,092 80
Colorado 16,755 65
Connecticut 13,162 49
Delaware 3,991 74
67,088 79
Florida
Georgia 29,613 58
3,914 57
Hawaii
Idaho
5,140 47
Illinois
40,086 53
Indiana 19,985 47
Iowa
11,816 36
Kansas
9,786 42
Kentucky 11,642 46
Louisiana 15,238 53
Maine
5,128 41
Maryland 21,553 70
Massachusetts 21,281
53
Michigan 33,135 52
Minnesota 18,375 51
Mississippi 7,392 38
Missouri 20,417 49
Source: NADA and U.S. Bureau of Labor Statistics

14

2008

Total number Average number
State
(all dealers) (per dealership)
Montana
3,846
34
Nebraska
7,029
39
Nevada
7,663
74
New Hampshire 6,227
44
New Jersey
29,293
62
New Mexico
6,588
55
New York
46,323
52
North Carolina 30,566
52
North Dakota
3,806
42
Ohio
39,425
52
Oklahoma
15,874
58
Oregon
11,980
50
Pennsylvania
44,377
47
Rhode Island
2,833
56
South Carolina 14,348
55
South Dakota
3,790
38
Tennessee
19,361
56
Texas
91,370
76
Utah
8,394
60
Vermont
2,899
33
Virginia
27,854
56
Washington
20,603
62
West Virginia
5,883
41
Wisconsin
22,248
43
Wyoming
2,059
33
Total U.S.
1,008,800
57

Annual payroll of
new-car dealerships
$ billions
60

55

Dealership employment by
position in 2013

Total of all dealerships

(left scale)
Average per dealership
(right scale)

$ thousands
4,000

2013 annual payroll of new-car

dealerships, by state

Percent of total

Other
3,500

29.9%

Sales
20.6%

50
Service
45

Managers

3,000

26.1%

23.4%

40
2,500
35

30

2004

2013

2,000

Source: NADA and U.S. Bureau of Labor Statistics

Source: NADA and U.S. Bureau of Labor Statistics

Average weekly earnings of new-car dealership

employees in 2013, by state
Alabama $975

Montana $888

Alaska $1,049

Nebraska $952

Arizona $1,039

Nevada $1,133

Arkansas $958

New Hampshire

$1,094

California $1,113

New Jersey

$1,242

Colorado $1,076

New Mexico

Connecticut $1,160

New York

Delaware $1,031

North Carolina

$969

Florida $1,041

North Dakota

$960

Georgia $1,036

Ohio $929

Hawaii $1,093

Oklahoma $1,001

Idaho $901

Oregon $942

Illinois $1,017

Pennsylvania $972

$925
$1,159

Indiana $906

Rhode Island

Iowa $927

South Carolina

$1,056
$957

Kansas $951

South Dakota

$990

Kentucky $948

Tennessee $1,034

Louisiana $993

Texas $1,138

Maine $919

Utah $939

Maryland $1,066

Vermont $949

Massachusetts $1,195

Virginia $1,032

Michigan $1,064

Washington $1,020
$870

Minnesota $936

West Virginia

Mississippi $929

Wisconsin $824

Missouri $991

Wyoming $959
Total U.S.

Source: NADA and U.S. Bureau of Labor Statistics

15

NADA DATA 2014nada.org

$1,038

Total all Average per

dealerships
dealership
State
($ billions)
($ millions)
$0.70 $2.38
Alabama
Alaska
$0.11 $3.24
Arizona
$1.28 $5.23
Arkansas
$0.41 $1.90
California
$6.28 $4.56
Colorado
$0.92 $3.58
Connecticut $0.78 $2.91
Delaware
$0.21 $3.90
Florida
$3.58 $4.20
Georgia
$1.57 $3.07
Hawaii
$0.22 $3.18
Idaho
$0.24 $2.16
Illinois
$2.09 $2.78
Indiana
$0.93 $2.19
Iowa
$0.56 $1.70
Kansas
$0.48 $2.05
Kentucky
$0.57 $2.22
Louisiana
$0.77 $2.67
Maine
$0.24 $1.95
Maryland
$1.18 $3.85
Massachusetts $1.30 $3.26
Michigan
$1.81 $2.84
Minnesota $0.88 $2.46
Mississippi $0.35 $1.80
Missouri
$1.04 $2.50
Montana
$0.17 $1.55
Nebraska
$0.34 $1.88
Nevada
$0.44 $4.32
New Hampshire
$0.35
$2.46
New Jersey
$1.86
$3.96
New Mexico
$0.31
$2.62
New York
$2.75
$3.10
North Carolina
$1.52
$2.58
North Dakota
$0.19
$2.08
Ohio
$1.88 $2.47
Oklahoma
$0.81 $2.96
Oregon
$0.58 $2.42
Pennsylvania $2.21 $2.36
Rhode Island
$0.15
$3.01
South Carolina
$0.70
$2.69
South Dakota
$0.19
$1.90
Tennessee $1.03 $2.97
Texas
$5.33 $4.40
Utah
$0.40 $2.86
Vermont
$0.14 $1.60
Virginia
$1.47 $2.95
Washington $1.08 $3.26
West Virginia
$0.26
$1.82
Wisconsin
$0.94 $1.83
Wyoming
$0.10 $1.61
Total U.S.
$53.71
$3.04
Source: NADA and U.S. Bureau of Labor Statistics

Vehicles in Operation and Scrappage

There were 252.7 million cars and
light-duty trucks in operation in the
United States in 2013, up 1.5 percent
from the previous year.
The average age for both cars and
light trucks was 11.4 years.

Vehicles in operationscrappage, by year

Total vehicles
in use

New vehicle
registrations
Scrappage

Scrappage as %
of registrations

2004

239,248,456 16,866,690 13,077,585 77.5%

2005

243,037,561 16,761,113 13,464,030 80.3%

2006

246,334,644 16,574,314 13,596,815 82.0%

2007

249,312,143 16,023,380 13,441,309 83.9%

2008

251,894,214 13,217,544 12,953,514 98.0%

2009

252,158,244 10,350,687 13,077,026 126.3%

2010

249,431,905 11,480,465 11,438,223 99.6%

2011

249,474,147 12,657,370 13,410,584 106.0%

2012

248,720,933 14,314,508 14,185,995 99.1%

2013

248,849,446 15,380,578 11,629,077 75.6%

Source: IHS Automotive

Total light vehicles in operation in 2013, by state

Passenger
Light Trucks
Total
State
cars
GVW 13
vehicles
Alabama
2,109,261 2,518,015 4,627,276
Alaska
182,650 466,134 648,784
Arizona
2,476,785 2,916,861 5,393,646
Arkansas
961,589 1,544,633 2,506,222
California
14,657,068 13,214,743 27,871,811
Colorado
1,924,973 2,696,944 4,621,917
Connecticut 1,540,195 1,281,133 2,821,328
Delaware
392,147 387,911 780,058
D.C.
219,344 101,359 320,703
Florida
7,731,046 7,103,123 14,834,169
3,892,464 4,440,869 8,333,333
Georgia
471,412 581,531 1,052,943
Hawaii
583,195 930,477 1,513,672
Idaho
5,082,558 4,975,299 10,057,857
Illinois
2,480,315 2,964,358 5,444,673
Indiana
1,267,963 1,677,717 2,945,680
Iowa
1,135,308 1,532,965 2,668,273
Kansas
1,680,173 2,045,428 3,725,601
Kentucky
1,495,417 2,193,932 3,689,349
Louisiana
510,521 642,107 1,152,628
Maine
2,405,498 2,161,900 4,567,398
Maryland
Massachusetts 2,575,640 2,304,820 4,880,460
3,783,589 4,339,618 8,123,207
Michigan
2,208,770 2,564,916 4,773,686
Minnesota
1,149,522 1,476,533 2,626,055
Mississippi
2,447,646 2,912,565 5,360,211
Missouri
Source: IHS Automotive

16

NADA DATA 2014nada.org

Passenger
Light Trucks
Total
State
cars
GVW 13
vehicles
Montana
415,684 783,275 1,198,959
Nebraska
787,664 1,061,455 1,849,119
Nevada
959,461 1,082,136 2,041,597
New Hampshire
581,917
625,980
1,207,897
New Jersey
3,724,647 3,120,320 6,844,967
New Mexico
733,062 1,066,516 1,799,578
New York
5,662,471
5,270,861 10,933,332
North Carolina 3,814,523 4,236,773 8,051,296
North Dakota 256,748 473,692 730,440
Ohio
5,073,009 4,958,692 10,031,701
1,712,545 2,272,527 3,985,072
Oklahoma
1,491,450 1,848,668 3,340,118
Oregon
Pennsylvania 5,249,369 5,372,794 10,622,163
Rhode Island 456,081 341,679 797,760
South Carolina 1,912,929 2,213,095 4,126,024
South Dakota 343,332 550,912 894,244
2,456,340 3,062,978 5,519,318
Tennessee
8,480,399 11,852,695 20,333,094
Texas
1,073,310 1,282,973 2,356,283
Utah
256,928 301,026 557,954
Vermont
3,414,335 3,517,585 6,931,920
Virginia
Washington 2,846,969 3,208,544 6,055,513
614,068
923,876
1,537,944
West Virginia
Wisconsin
2,345,397 2,665,559 5,010,956
186,286 430,221 616,507
Wyoming
120,213,973 132,500,723 252,714,696
Total
Including District of Columbia (D.C.)

Total new-vehicle registrations, by state

State
2012 2013
Alabama
188,539
199,834
Alaska
31,356
30,674
Arizona
291,890
349,453
Arkansas
123,503
131,080
California
1,529,238
1,711,762
Colorado
227,307
247,544
Connecticut
158,128
169,999
Delaware
43,929
47,840
D.C.
17,900
19,743
Florida
1,006,888
1,100,893
Georgia
399,515
435,464
Hawaii
60,543
67,482
Idaho
42,964
49,076
Illinois
590,162
611,432
Indiana
221,926
229,966
Iowa
127,396
133,825
Kansas
102,362
109,562
Kentucky
137,288
139,681
Louisiana
209,337
220,987
Maine
51,898
56,143
Maryland
305,228
317,924
Massachusetts 309,736
332,786
Michigan
483,926
540,295
Minnesota
232,160
245,719
Mississippi
102,565
109,305
Missouri
259,706
273,755
Source: IHS Automotive

State
2012 2013
Montana
54,796
58,129
Nebraska
80,643
84,516
Nevada
112,209
120,277
New Hampshire 80,298
84,016
New Jersey
513,551
545,613
New Mexico
81,407
86,060
New York
868,459
928,475
North Carolina 373,885
402,078
North Dakota
39,517
43,724
Ohio
527,743
571,047
Oklahoma
718,900
699,406
Oregon
133,100
146,603
Pennsylvania
598,274
622,088
Rhode Island
44,446
47,289
South Carolina 175,888
197,635
South Dakota
37,156
38,759
Tennessee
266,568
273,138
Texas
1,275,909
1,423,625
Utah
107,013
116,124
Vermont
35,578
39,043
Virginia
378,916
375,262
Washington
228,180
251,044
West Virginia
83,036
84,117
Wisconsin
217,599
233,680
Wyoming
26,047
26,606
Total U.S.
14,314,508 15,380,578
Including District of Columbia (D.C.)

Total vehicles in
operation, by year

Average age of passenger cars

and light trucks, by year
Cars
Light trucks
All light vehicles

350
300

Total cars and trucks

In millions
17
Number of vehicles
scrapped during year
(left scale)
16

12

In millions

11

Total

Estimated vehicle
scrappage, by year
Percent
140%
130

15

250

120

14
10

Trucks

200

110

13
100
12

150
100
Cars
8
2004

2013

Source: IHS Automotive

17

80

10

50
0

90

11

NADA DATA 2014nada.org

Scrappage as % of
new-vehicle registrations
(right scale)

9
2004

Source: IHS Automotive

2013

2004

Source: IHS Automotive

2013

70
60

Advertising and the Dealership

Franchised new-car dealerships spent
$7.6 billion on advertising in 2013,
up 6.1 percent from $7.2 billion the
previous year.
Average ad expense per new-vehicle
retailed fell to $616, down 0.8 percent.
For various advertising (newspapers,
radio, television, direct mail, Internet
and other), dealer advertising for newspaper, print and radio has declined
since 2003with newspaper advertis-

ing declining the most, down more

than 30 percentage points. Internet
advertising increased the most since
2003, up nearly 30 percentage points.
The average dealership spent 33
percent of advertising on the Internet
in 2013, up from 26.5 percent. Radio
advertising fell to 14.5 percent, from
15.9 percent. Television advertising
increased slightly to 20.8 percent, from
20.2 percent.

Advertising expenditures,
by medium, 2013
Percent of total
Other
5.3%

Estimated advertising expenses per dealership in 2013

By number of new units sold

Average of all
750 or
By media used
dealerships
1149
150399
400749
more
Newspapers
$66,253
$26,910
$32,907
$47,892
$81,020
Radio
$65,690
$19,336
$28,770
$62,840
$91,617
Television
$97,657
$17,451
$36,598
$92,694 $162,376
Direct Mail
$46,208
$11,064
$19,999
$39,139
$75,002
Internet
$111,822
$26,828
$52,798
$95,557 $172,453
Other
$42,114
$11,046
$21,364
$35,249
$61,476
Total
$429,744 $112,635 $192,436 $373,371 $643,942
Total advertising as a

% of total sales
1.04% 1.11% 1.05% 1.01% 0.92%
Total advertising per
new vehicle sold
$616
$862
$616
$517
$410
Source: NADA

Internet
33.0%

Newspaper
15.5%
Radio
14.5%
Television
20.8%

Direct mail
11.0%
Source: NADA

Total dealership advertising

expenditures
In billions of dollars
$9

Total dealership advertising

Per new unit sold
$800
7

600

400
2004

2005

2006

2007

2008

Source: NADA

18

NADA DATA 2014nada.org

2009

2010

2011

2012

2013

2004

Source: NADA

2013

New-Truck Dealerships
Sales of medium- and heavy-duty
trucks (classes 4-8) increased to
351,737 units in 2013a 1.7 percent
gain from 345,876 units the previous
year. For all truck classes, Freightliner
sold the most commercial trucks,
with 31.6 percent of the market.
In 2013, Ford and International
exchanged ranks from the previous
yearFord moved to second place
while International moved to third
place. Ford had 16.5 percent of the
medium- and heavy-duty truck market, up from 12.9 percent, while
International had 14.3 percent of the
market, down from 19.8 percent.

Number of medium- and heavy-duty truck dealerships

2004

2005

2006

2007

2008

2009

2010

2011

2012

2013

Source: NADA

U.S. retail sales and market sharecalendar year 2013

Truck classes 48

Percent of
Class
4 5 6 7 8
Total
market
Freightliner

1,754

18,899

3,166

39,302

12,487

29

2,369

Kenworth

Peterbilt

Ford

3,169

31.6%

58,124

16.5%

9,875

11,587 26,555

50,415

14.3%

24

1,193

3,289 25,943

30,449

8.7%

85

181

4,574 24,717

29,557

8.4%

Volvo Truck

0 20,658

20,658

5.9%

Mack

0 16,289

16,289

4.6%

Isuzu

7,570

4,048

11,618

3.3%

Dodge/Ram

10,901

10,901

3.1%

Hino

880

4,728

1,833

7,441

2.1%

Western Star

3,008

3,008

0.9%

Mitsubishi Fuso 1,144

666

1,813

0.5%

International

Truck categories

23,030 67,568 111,251

Trucks are classified by gross vehicle weight

UD Trucks

16

111

40

167

0.0%

Class 1

Other

46

46

0.0%

0 6,000 lb.

Class 2

6,001 10,000 lb.

Class 3

10,001 14,000 lb.

Class 4

14,001 16,000 lb.

Class 5

16,001 19,500 lb.

Class 6

19,501 26,000 lb.

Class 7

26,001 33,000 lb.

Class 8

33,001 and over lb.

Source: WardsAuto

19

NADA DATA 2014nada.org

Total
Source: WardsAuto

11,909 60,045 47,475 47,524 184,784 351,737 100.0%

ANNUAL FINANCIAL PROFILE

OF AMERICAS FRANCHISED
NEW- CAR DE ALERSHIPS

2014
www.nada.org/nadadata