1. No category

ANNUAL FINANCIAL PROFILE
OF AMERICA’S FRANCHISED
NEW- CAR DE ALERSHIPS
2014
www.nada.org/nadadata
Overview
NADA Data 2014 —the annual financial profile of
America’s franchised new-car dealerships—shows 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 competition—whether from online
research by consumers, the vast network of competing
dealers or the many new compelling vehicles rolling into
showrooms—will 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, and—as has happened every
year since the recession—there 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
2
NADA DATA 2014 nada.org
Average Dealership Profile
Sales for franchised new-car dealerships reached 15.5 million units in 20131. Total dealership revenue by department—which includes sales of new and used vehicles, as well
as service and parts—reached $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
20092010 201120122013
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
3
NADA DATA 2014 nada.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
4
NADA DATA 2014 nada.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
Alabama294
Alaska34
Arizona245
Arkansas218
California1,377
Colorado258
Connecticut269
Delaware54
D.C.1
Florida852
Georgia512
Hawaii69
Idaho110
Illinois752
Indiana424
Iowa329
Kansas233
Kentucky255
Louisiana290
Maine124
Maryland306
Massachusetts400
Michigan637
Minnesota358
Mississippi195
Missouri414
Source: NADA
Montana113
Nebraska182
Nevada103
142
New Hampshire
New Jersey
471
New Mexico
119
888
New York
North Carolina
589
North Dakota
90
Ohio760
Oklahoma275
Oregon239
Pennsylvania936
51
Rhode Island
262
South Carolina
South Dakota
101
Tennessee345
Texas1,210
Utah141
Vermont88
Virginia500
Washington330
144
West Virginia
Wisconsin513
Wyoming63
17,665
Total U.S.
Including District of Columbia (D.C.).
1
Number of dealerships, by volume of new-unit sales, 2013
Number of dealerships
8,000
4,000
0
5
NADA DATA 2014 nada.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
sales dollars, 2013
By department
Service
and parts
11.6%
Used vehicles
31.3%
New vehicles
57.1%
Source: NADA
6
NADA DATA 2014 nada.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
0
7
NADA DATA 2014 nada.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
of selling price
New-vehicle inventories and days’ supply
Inventory (in millions)
4.0
4.5
2013
Source: NADA
8
Domestic
2.0
60
NADA DATA 2014 nada.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
910,19014.1
14.2%
February1,188,26215.3 1,145,82215.0
3.7%
March
1,448,01415.2 1,400,13114.3
3.4%
April
1,279,69014.9 1,181,22414.4
8.3%
May
1,436,77115.2 1,330,10113.7
8.0%
June
1,398,72115.9 1,281,26614.1
9.2%
July
1,309,99715.6 1,149,61214.3
14.0%
August 1,498,54016.0 1,280,20414.5
17.1%
September
1,133,58015.2 1,183,91314.9
-4.3%
October 1,201,34115.2 1,087,60714.2
10.5%
November
1,238,37716.3 1,139,93015.5
8.6%
December
1,352,33015.3 1,351,78915.3
0.0%
Full Year
15,524,82415.514,441,78914.4
7.5%
Source: WardsAuto
2004
Total
January 1,039,20115.2
New vehicles retailed
6.0%
3.0
Days’ supply
80
Seasonally adjusted annual rate
1
Total new light-vehicle sales rose by 7.5 percent in 2013.
New light-duty vehicle sales, by year
TotalLight-duty
Light-dutylight-duty trucks
Year
New cars
trucks
vehicles
as % of total
2004
7,505,900 9,360,60016,866,500 55.5%
2005
7,666,700 9,278,30016,945,000 54.8%
2006
7,780,800 8,721,00016,502,700 52.8%
2007
7,618,400 8,470,90016,089,300 52.6%
2008
6,813,550 6,381,05013,194,600 48.4%
2009
5,456,300 4,945,40010,401,700 47.5%
2010
5,635,400 5,919,10011,554,500 51.2%
2011
6,089,300 6,644,90012,734,200 52.2%
2012
7,242,800 7,199,00014,441,800 49.8%
2013
7,582,500 7,942,30015,524,800 51.2%
Source: WardsAuto
Number of new vehicles sold
and selling price
Year
New vehicles
sold per
dealership
Average
retail
selling price
2004 77928,050
2005 78828,400
2006 77828,450
2007 77528,800
2008 65928,350
2009 56328,966
2010 65329,793
2011 72630,659
2012 81930,910
2013 87931,762
Source: NADA
New-vehicle sales and market share, by manufacturer
General
Other
Year
ChryslerFord MotorsToyotaHondaNissan
Volkswagen
importsTotal
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%
1,641,5002,205,5002,595,7002,082,5001,422,8001,141,700 438,1002,912,260
14,440,060
2012
11.37%15.27%17.98%14.42% 9.85% 7.91% 3.03%20.17%
1,789,5002,435,3002,786,1002,236,0001,525,3001,248,400 407,7003,096,500
15,524,800
2013
11.53%15.69%17.95%14.40% 9.82% 8.04% 2.63%19.95%
1,697,6752,398,3253,213,1352,119,8351,382,3351,008,265 354,4052,251,331
14,425,296
10-Year
Average
11.8%16.6%22.3%14.7% 9.6% 7.0% 2.5%15.6%
Source: WardsAuto
9
NADA DATA 2014 nada.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
0
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 2014 nada.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 percent—with 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 2014 nada.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 parts—all 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
0
Customer
mechanical
Customer
body
Warranty
Sublet
Internal
Other
Parts sales
$20
10
0
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 2014 nada.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 parts—all 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
Warranty6.84
Sublet2.65
Internal6.72
Other1.48
Total service labor
80
70
$37.45
Parts sales
Customer Mechanical
$13.33
Customer Body
3.10
Wholesale12.56
Counter2.57
Warranty7.58
Internal4.48
Other3.52
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%
8
5
40
2004
2005
2006
2007
2008
Source: NADA
13
NADA DATA 2014 nada.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 2014 nada.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 14,01648
2,04760
Alaska
Arizona 24,08898
Arkansas 8,42139
California110,09280
Colorado 16,75565
Connecticut13,162 49
Delaware 3,99174
67,08879
Florida
Georgia 29,61358
3,91457
Hawaii
Idaho
5,14047
Illinois
40,08653
Indiana 19,98547
Iowa
11,81636
Kansas
9,78642
Kentucky 11,64246
Louisiana 15,23853
Maine
5,12841
Maryland 21,55370
Massachusetts21,281
53
Michigan 33,13552
Minnesota18,37551
Mississippi 7,39238
Missouri 20,41749
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 2014 nada.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 operation–scrappage, by year
Total vehicles
in use
New vehicle
registrations
Scrappage
Scrappage as %
of registrations
2004
239,248,45616,866,690 13,077,585 77.5%
2005
243,037,56116,761,113 13,464,030 80.3%
2006
246,334,64416,574,314 13,596,815 82.0%
2007
249,312,14316,023,380 13,441,309 83.9%
2008
251,894,21413,217,544 12,953,514 98.0%
2009
252,158,24410,350,687 13,077,026 126.3%
2010
249,431,90511,480,465 11,438,223 99.6%
2011
249,474,14712,657,370 13,410,584 106.0%
2012
248,720,93314,314,508 14,185,995 99.1%
2013
248,849,44615,380,578 11,629,077 75.6%
Source: IHS Automotive
Total light vehicles in operation in 2013, by state
Passenger
Light Trucks
Total
State
cars
GVW 1–3 vehicles
Alabama
2,109,2612,518,0154,627,276
Alaska
182,650466,134648,784
Arizona
2,476,7852,916,8615,393,646
Arkansas
961,5891,544,6332,506,222
California
14,657,06813,214,74327,871,811
Colorado
1,924,9732,696,9444,621,917
Connecticut 1,540,1951,281,1332,821,328
Delaware
392,147387,911780,058
D.C.
219,344101,359320,703
Florida
7,731,046 7,103,12314,834,169
3,892,4644,440,8698,333,333
Georgia
471,412 581,5311,052,943
Hawaii
583,195 930,4771,513,672
Idaho
5,082,558 4,975,29910,057,857
Illinois
2,480,3152,964,3585,444,673
Indiana
1,267,9631,677,7172,945,680
Iowa
1,135,3081,532,9652,668,273
Kansas
1,680,1732,045,4283,725,601
Kentucky
1,495,4172,193,9323,689,349
Louisiana
510,521 642,1071,152,628
Maine
2,405,4982,161,9004,567,398
Maryland
Massachusetts2,575,6402,304,8204,880,460
3,783,5894,339,6188,123,207
Michigan
2,208,7702,564,9164,773,686
Minnesota
1,149,5221,476,5332,626,055
Mississippi
2,447,6462,912,5655,360,211
Missouri
Source: IHS Automotive
16
NADA DATA 2014 nada.org
1
Passenger
Light Trucks
Total
State
cars
GVW 1–3 vehicles
Montana
415,684 783,2751,198,959
Nebraska
787,6641,061,4551,849,119
Nevada
959,4611,082,1362,041,597
New Hampshire
581,917
625,980
1,207,897
New Jersey
3,724,6473,120,3206,844,967
New Mexico
733,0621,066,5161,799,578
New York
5,662,471
5,270,861 10,933,332
North Carolina 3,814,5234,236,7738,051,296
North Dakota 256,748473,692730,440
Ohio
5,073,009 4,958,69210,031,701
1,712,5452,272,5273,985,072
Oklahoma
1,491,4501,848,6683,340,118
Oregon
Pennsylvania 5,249,369 5,372,79410,622,163
Rhode Island 456,081341,679797,760
South Carolina 1,912,9292,213,0954,126,024
South Dakota 343,332550,912894,244
2,456,3403,062,9785,519,318
Tennessee
8,480,39911,852,69520,333,094
Texas
1,073,3101,282,9732,356,283
Utah
256,928301,026557,954
Vermont
3,414,3353,517,5856,931,920
Virginia
Washington 2,846,9693,208,5446,055,513
614,068
923,876
1,537,944
West Virginia
Wisconsin
2,345,3972,665,5595,010,956
186,286430,221616,507
Wyoming
120,213,973132,500,723252,714,696
Total
Including District of Columbia (D.C.)
1
Total new-vehicle registrations, by state
State
20122013
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
1
State
20122013
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.)
1
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
9
NADA DATA 2014 nada.org
Scrappage as % of
new-vehicle registrations
(right scale)
9
2004
Source: IHS Automotive
2013
8
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 2003—with 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
1–149
150–399
400–749
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
5
400
2004
2005
2006
2007
2008
Source: NADA
18
NADA DATA 2014 nada.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 2013—a 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
year—Ford 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 share–calendar year 2013
Truck classes 4–8
Percent of
Class
45678
Total
market
Freightliner
0
1,754 18,899 3,166 39,302 12,487 29 2,369 Kenworth
0
Peterbilt
Ford
3,169 31.6%
0
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%
0
85 181 4,574 24,717 29,557 8.4%
Volvo Truck
0
0
0
0 20,658 20,658 5.9%
Mack
0
0
0
0 16,289 16,289 4.6%
Isuzu
7,570 4,048 0
0
0
11,618 3.3%
Dodge/Ram
0
10,901 0
0
0
10,901 3.1%
Hino
0
880 4,728 1,833 0
7,441 2.1%
Western Star
0
0
0
0
3,008 3,008 0.9%
Mitsubishi Fuso 1,144 666 1
2
0
1,813 0.5%
International
Truck categories
23,030 67,568 111,251 Trucks are classified by gross vehicle weight
UD Trucks
0
16 111 40 0
167 0.0%
Class 1
Other
0
0
0
0
46 46 0.0%
0 – 6,000lb.
Class 2
6,001 – 10,000lb.
Class 3
10,001 – 14,000lb.
Class 4
14,001 – 16,000lb.
Class 5
16,001 – 19,500lb.
Class 6
19,501 – 26,000lb.
Class 7
26,001 – 33,000lb.
Class 8
33,001 and overlb.
Source: WardsAuto
19
NADA DATA 2014 nada.org
Total
Source: WardsAuto
11,909 60,045 47,475 47,524 184,784 351,737 100.0%
ANNUAL FINANCIAL PROFILE
OF AMERICA’S FRANCHISED
NEW- CAR DE ALERSHIPS
2014
www.nada.org/nadadata