NADA Data 2014

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
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
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
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
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
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
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
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
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
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
$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
$90
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
$11
Percent of total dealership population

50%
40
2004
2005
2006
2007
2008
Source: NADA
13
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
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
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
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.
15
$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
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
16

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
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
17
80
10
50
0
90
11
Scrappage as % of
new-vehicle registrations
(right scale)
9
2004
2013
2004
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
$9
Total dealership advertising

Per new unit sold
$800
7
600
400
2004
2005
2006
2007
2008
Source: NADA
18
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
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

NADA Data 2014

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ANNUAL FINANCIAL PROFILE

ers. Most shoppers continue

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

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

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

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

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

NADA DATA 2014nada.org

Average Dealership Profile

TOTAL GROSS AND EXPENSE

the previous year. Total expenses were up 5.4 percent,

TOTAL DEALERSHIP PROFITS

Data source: WardsAuto

Average dealership profile

Total dealership gross

Total dealership expense

Net profit before taxes

(Net pretax profit in

Used-vehicle department sales

New-vehicle average selling price

Used-vehicle average selling price

Service and parts sales

Average net worth (as of 12/31)

NADA DATA 2014nada.org

NADA Optimism Index

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

The latest quarterly survey data is for Q4 2013.

Optimism index vs. new-vehicle sales

NADA Optimism Index

NADA DATA 2014nada.org

New-vehicle dealerships, by state in 2013

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

NADA DATA 2014nada.org

Total Dealership Sales Dollars

Total sales of new-vehicle dealerships

All dealerships (left scale)

Source: NADA and U.S. Department of Commerce

Share of total dealership

NADA DATA 2014nada.org

Total sales by state, 2013

Dealership Financial Trends

New-vehicle department net profit

Used-vehicle department net profit

Service and parts department net profit

NADA DATA 2014nada.org

The New-Vehicle Department

Gross margin as percentage

New-vehicle inventories and days supply

NADA DATA 2014nada.org

Source: WardsAuto and NADA

Source: WardsAuto and NADA

New-vehicle sales, by month

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

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

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

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

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

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

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