NADA: New-Car Dealerships Employ Record Numbers in 2016
TYSONS, Va. – New-car dealerships directly employed a record 1,131,900 workers last year, a Two.4% increase from 2015, according to the National Automobile Dealers Association`s NADA Data 2016.
On average, a dealership employed sixty nine workers last year, up from sixty six in 2015. Average annual payroll was $65 billion, up Four.9%, or $Trio.9 million per dealership. The average weekly earnings of dealership employees grew Two.6% from 2015. Total annual compensation averaged $Sixty nine,000 per employee, providing dealership employees one of the highest average salaries of any industry.
«Total dealership employment has consistently risen every year since the Good Recession,» said NADA Chief Economist Steven Szakaly. «In addition, hundreds of thousands of other local jobs are dependent on dealerships.»
Total dealership sales revenue, including new- and used-car sales (including F&I), parts, service and figure shop, was $995.6 billion in 2016, up 6.1% from 2015. The average per dealership was $59.6 million.
The Top ten states in dealership sales in two thousand sixteen were California, Texas, Florida, Fresh York, Oklahoma, Pennsylvania, Illinois, Michigan, Ohio and Fresh Jersey.
Despite rising auto sales and back-to-back record sales in two thousand fifteen and 2016, net pretax profit at new-car dealerships as a percent of total sales has remained plane, hovering at Two.Five 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 fresh light-vehicle sales to proceed on a strong trend, ending another year above seventeen million.»
Looking at fixed-ops, new-car dealerships wrote two hundred fifty nine 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 switches and non-warranty repair orders at dealerships, on average, enhanced by Ten.9% and Four.2%, respectively, in 2016. This increase demonstrates that consumers value the expertise of the highly-trained and factory-certified technicians employed at new-vehicle dealerships.»
Other highlights from NADA Data two thousand sixteen include:
- The total number of new-car dealerships was 16,708, up one hundred sixty three from 2015.
- A record 17,465,020 fresh cars and light trucks were purchased or leased in 2016.
- The average selling price of a fresh vehicle was $34,449, up 3% from 2015.
- The average selling price of a used vehicle was $Nineteen,866, up Two.5% from 2015.
- Fresh vehicles sold per dealership, on average, was 1,045.
- Service contract invasion on new- or used-vehicle purchases was 43.7%, up 1% from 2015.
- New-car dealerships sold 14,968,206 million used vehicles, accounting for 37% of all used vehicles retailed.