U.S. Dealerships Employed More than 1,000,000 People Last Year

Published: May 23, 2014

emilio labrador / Foter / Creative Commons Attribution 2.0 Generic (CC BY 2.0)

According to information provided by the National Association of Automobile Dealers (NADA), U.S. new car dealerships employed more than a million people in 2013. This is “the first time the industry has exceeded that threshold since 2008.”

NADA forecasts the upward trend will continue in 2014 thanks to stronger a housing market, economic recovery and lower interest auto loans.

The information, released in the NADA DATA 2014 report, shows that employment in car dealership was 3 percent higher in 2013 than it was in 2012. The report reveals some more useful information: the average U.S. car dealership employed 57 people in 2013 compared to 55 people in 2012. Annual payroll was $3 million, a 3-percent increase.

Dealership profitability, however, is “unlikely to rise in 2014 from the 2013 industry average net pretax profit margin of 2.2 percent, defined as pretax profit as a percentage of total revenues.” One of the main reason for this is competition, caused by “online research, a network of competing franchised dealers or compelling new vehicles.”

Read the full article in Tire Business.

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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.