2014: A Great Time to be a Car Dealer

Published: Feb 20, 2014

A new study by Urban Science found that, though the number of US dealerships remained mostly unchanged in 2013, the sales of new cars brought a surge in their profits.

Although the year started with slightly less dealerships than the same time last year, the change was neglible (0,1%). Furthermore, “in the next three to four years, we’ll see flat and slight uptick in the number of dealerships” with no significant differences from coast to coast, according to John Frith, Urban Science’s Vice President.

The only states that saw a significant increase in their dealership counts in 2013 were California and Texas with 34 and 15 new car dealers, respectively.

As for profits, the analysis shows that the average US car dealerships sold 874 vehicles, compared to 812 in 2012 and just 564 in 2009. According to Mr. Firth in 2014 the number can go as high as 914.

Read the full article at Autonews.

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Victor Lance is the founder and president of Lance Surety Bond Associates, Inc. He began his career as an officer in the U.S. Marine Corps, serving two combat tours. As president of Lance Surety, he now focuses on educating and assisting small businesses throughout the country with various license and bond requirements. Victor graduated from Villanova University with a degree in Business Administration and holds a Masters in Business Administration (MBA) from the University of Michigan's Ross School of Business.