agent Entrepreneur logo
MenuMENU
SearchSEARCH

NADA: U.S. Dealers Employ More than 1 Million People

May 27, 2014
2 min to read


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.

Ad Loading...


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.

Ad Loading...


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

Blue and white RV parked on beach facing the ocean.
Industryby Lauren LawrenceSeptember 3, 2026

RV Group Expands Carolina Footprint

Blue Compass RV Columbia Northeast is the 13th RV dealership owned by Blue Compass in the Carolinas.

Read More →
Photo of two men and one woman on a discussion panel
Industryby Hannah MitchellSeptember 1, 2026

Agent Acumen

An Agent Summit panel of people who’ve been supporting auto dealers for years gave both timely and timeless advice for those starting out or mulling the prospect.

Read More →
Gloved hand holding two wrenches next to “Turn Overdue into Opportunity” Graphic
Industryby Lauren LawrenceAugust 27, 2026

Missed Maintenance Creates Opportunity

As families get back on the road and into daily school routines, service drives have an opportunity to capture customers who are behind on recommended vehicle maintenance.

Read More →
Ad Loading...
Mitsubishi shadow line-up
Industryby Hannah MitchellAugust 25, 2026

Mitsubishi Unveils U.S. Plan

The automaker announced a strategy that includes an expanded lineup and dealership presence, along with more ‘rugged’ and electric models.

Read More →
Photo of a laptop, cellphone and eyeglasses on a desk next to an office window
IndustryAugust 24, 2026

Selling to Grow

The question of whether you should sell your agency and if so, when, is up to you. But it’s a question worth asking to ensure you keep the business on the right path for yourself, employees and clients.

Read More →
Mechanic holding a vehicle diagnostic device while standing above an open car hood
Industryby Hannah MitchellAugust 24, 2026

Recalled Vehicles Hit 5-Year High

Though the number of events has fallen so far this year, impacted units are up significantly. Meanwhile, regulators consider consumer notification changes.

Read More →
Ad Loading...
outside of car dealership with cars parked in front
Industryby Lauren LawrenceAugust 20, 2026

Auto Group Acquires Top-Performing Rooftop

Car Pros sold its Kia Huntington Beach location to Sutherlin Automotive Group, marking the buyer’s third location in Southern California.

Read More →
Cars from the rear on a Shanghai freeway
Industryby Hannah MitchellAugust 19, 2026

China as Pacesetter

Automotive leaders huddled on where North America stands in the global picture and how it can strengthen its position against the Asian juggernaut’s surging industry.

Read More →
Orange BMW car on empty road.
Industryby Hannah MitchellAugust 14, 2026

BMW Concept Car Makes Fuel to Burn

The prototype developed in concert with a South Carolina university engineering team generates more solar energy than it uses in a typical daily commute.

Read More →
Ad Loading...
Six men standing for photo outside of car dealership
Industryby Lauren LawrenceAugust 13, 2026

South Carolina Auto Group Downsizes

Florida-based group Holler-Classic has acquired four rooftops, its first in South Carolina, from Dick Smith Automotive Group.

Read More →
Ad Loading...