NADA: U.S. Dealers Employ More than 1 Million People
MCLEAN, Va. — A rebounding U.S. economy and rising auto sales are having a positive impact on the employment outlook at franchised new-car dealerships across the country, according to the National Automobile Dealers Association.
According to the group’s NADA Data 2014 report, which contains dealership sales and financial trends, employment at U.S. franchised dealerships topped one million people last year after falling during the recession in 2009. The exact count in 2013 was 1,008,800 people employed, up 3.4% from the previous year.
New-car dealerships employed an average of 57 people. Average payroll in 2013 was $3 million, up 3% from the prior year. Total payroll for all new-car dealerships in the U.S. last year was $53.7 billion.
“The economic recovery is continuing, and we expect a stronger housing market, improving job prospects and continued low interest rates for auto loans to boost sales this year,” said NADA Chief Economist Steven Szakaly.
New-car dealerships, on average, had a net, pretax profit of 2.2% in 2013 — unchanged from the previous year. As a percentage of total sales, the 2.2% figure represents sales in the new- and used-vehicle departments and service-and-parts sales. New-car dealerships, on average, posted a net, pretax profit of $923,248, up 10.5% from the prior year. Total revenue at new-car dealerships reached $730 billion in 2013, an increase of 8.8%.
“Profitability at new-car dealerships remained flat in 2013,” Szakaly noted. “Fierce price competition — whether from online research, a network of competing franchised dealers or compelling new vehicles — continues to dominate an industry with slim retailing margins.”
Gross margins on new-car and light-truck sales continued to decline in 2013 — falling to 3.8% from the previous year.
Sales in the service, parts and body shop at new-car dealerships increased 4.8% in 2013. Warranty work performed by new-car dealers totaled $14.4 billion in service and parts last year — all at no cost to the customer.
New-car dealers spent $7.6 billion on advertising in 2013, up 6.1%. Dealerships, on average, spent 33% of their advertising dollars on Internet ads, up from 26.5% the previous year. Television advertising accounted for 21% of dealership spending, a slight increase.
More Industry

Autos More Appealing
Consumers gave new cars better scores again this year for design, performance and more as mass-market brands kept gaining on premium lineups, JD Power found in an annual poll.
Read More →
Used EVs Defy Overall Market
While the used-car market saw three months of price declines or stagnation, the used EV segment did the opposite – rising for three straight months.
Read More →
Gone to the Dogs
A Stellantis brand decided to have some fun with one of its SUVs’ design to address growing emphasis on family pets.
Read More →
OEM Poll Sees Industry Evolution
Kerrigan Advisors’ survey of automakers finds that tariffs, technology, network tightening and other factors are poised to reshape auto retail.
Read More →
Luxe N.C. Dealerships Change Hands
A collection of Italian and English brand franchises were handed off to the owner’s friend in the business and include the Carolinas’ only Ferrari retail stores.
Read More →
Exposure Drives Interest in Chinese Cars
At a recent demonstration, consumers had the chance to ride in a Chinese-branded vehicle, a firsthand experience that improved their perceptions and purchase intent.
Read More →
Automotive Consumers Sink Further in Debt
Most financing metrics hit records in the second quarter as more buyers locked themselves into long terms and high monthly payments.
Read More →
Agent Advocate
Rob Mancuso, who comes from a long line of auto dealers, values general agents’ place in the industry and makes a case for them taking an even bigger seat at the table.
Read More →
Driving Under Distraction
Though consumers gave higher marks to new vehicles in JD Power’s most recent initial-quality poll, high-tech interference worsened, pointing to craving for simplicity.
Read More →
Affordable New Cars a Thing of the Past
More than one out of five new vehicles sell for more than $60,000, according to Edmunds. That's up 7% compared to prepandemic 2019.
Read More →