ANNUAL FINANCIAL PROFILE 2014 OF AMERICA’S …m.oeconnection.com/media/95753/nada_data_2014_05282014.pdf · NADA Data 2014—the annual financial profile of America’s franchised

ANNUAL FINANCIAL PROFILE OF AMERICA’S FRANCHISED NEW-CAR DEALERSHIPS

2014www.nada.org/nadadata

NADA Data 2014—the annual f inancial profile of America’s franchised new-car dealerships—shows 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 for-ward, fierce price competition—whether from online research by consumers, the vast network of competing dealers or the many new compelling vehicles rolling into showrooms—will 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 service and operations.

The demand for used vehicles is also very strong. In 2013, used-vehicle prices were better than expected, and—as has happened every year since the recession—there was a clear shortage of late-model 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

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

New-Vehicle Dealerships ................................. 5

Total Dealership Sales Dollars ......................... 6

Dealership Financial Trends ............................ 7

The New-Vehicle Department ........................... 8

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

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

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

Employment and Payroll ................................ 14

Vehicles in Operation and Scrappage ............. 16

Advertising and the Dealership ...................... 18

New-Truck Dealerships.................................. 19

Steven Szakaly Chief Economist, NADA

NADA DATA 2014 nada.org2

Overview


Average Dealership Profile

Sales for franchised new-car dealerships reached 15.5 mil-lion units in 20131. Total dealership revenue by depart-ment—which includes sales of new and used vehicles, as well as service and parts—reached $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. 1Data 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%

As % of total sales 15.2% 14.5% 14.4% 13.7% 13.4%

Total dealership expense $3,658,560 $3,863,023 $4,252,805 $4,380,646 $4,616,427 5.4%

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 10.5%

As % of total sales 1.5% 2.1% 2.3% 2.2% 2.2%

(Net pretax profit in $187,454 $291,575 $353,284 $363,959 $396,414 8.9% constant 1982 dollars)

New-vehicle department sales $13,937,579 $16,352,208 $19,114,448 $21,361,580 $23,599,234 10.5%

As % of total sales 52.3% 52.8% 54.4% 56.2% 57.1%

Used-vehicle department sales $8,537,426 $10,244,937 $11,369,595 $12,063,177 $12,945,520 7.3%

As % of total sales 32.0% 33.1% 32.4% 31.8% 31.3%

Service and parts sales $4,170,298 $4,344,656 $4,644,649 $4,569,233 $4,789,222 4.8%

As % of total sales 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%

Average net worth (as of 12/31) $2,235,369 $2,563,220 $2,838,652 $3,005,725 $3,181,198 5.8%

Net profit as % of net worth 18.0% 24.8% 28.0% 27.8% 29.0%Source: NADA


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 aver-age 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.1The latest quarterly survey data is for Q4 2013.

Optimism index vs. new-vehicle sales

2013201220112010200920082007200620052004

0

100

200

NADA Optimism IndexNew-vehicle sales

Source: NADA


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 num-ber of dealerships with sales volumes of 400-749 units and those selling 750-plus units.

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

New-vehicle dealerships, by state 1 in 2013

Alabama 294Alaska 34Arizona 245Arkansas 218California 1,377Colorado 258Connecticut 269Delaware 54D.C. 1Florida 852Georgia 512Hawaii 69Idaho 110Illinois 752Indiana 424Iowa 329Kansas 233Kentucky 255Louisiana 290Maine 124Maryland 306Massachusetts 400Michigan 637Minnesota 358Mississippi 195Missouri 414

Montana 113Nebraska 182Nevada 103New Hampshire 142New Jersey 471New Mexico 119New York 888North Carolina 589North Dakota 90Ohio 760Oklahoma 275Oregon 239Pennsylvania 936Rhode Island 51South Carolina 262South Dakota 101Tennessee 345Texas 1,210Utah 141Vermont 88Virginia 500Washington 330West Virginia 144Wisconsin 513Wyoming 63Total U.S. 17,665

1Including District of Columbia (D.C.).Source: NADA

Number of dealerships

0

4,000

8,000

0-149 150-399 400-749 750+Annual new-unit sales Source: NADA

2004

$ billions $ millionsAll dealerships (left scale)Average per dealership (right scale)

400

600

800

20132005 2006 2007 2008 2009 2010 2011 201220

35

50


Total Dealership Sales Dollars

Total sales of new-vehicle dealerships

Total sales by state, 2013

Average per All dealerships dealership State (millions) (thousands)Alabama $10,165 $34,576Alaska $1,287 $37,852Arizona $17,623 $71,932Arkansas $6,431 $29,498California $86,985 $63,170Colorado $13,576 $52,621Connecticut $9,471 $35,207Delaware $2,565 $47,491Florida $51,537 $60,490Georgia $22,147 $43,256Hawaii $2,029 $29,400Idaho $3,232 $29,379Illinois $28,356 $37,708Indiana $13,110 $30,920Iowa $8,011 $24,351Kansas $6,110 $26,225Kentucky $7,305 $28,648Louisiana $10,020 $34,553Maine $3,303 $26,637Maryland $13,983 $45,696Massachusetts $16,719 $41,798Michigan $15,102 $23,708Minnesota $10,222 $28,552Mississippi $5,424 $27,816Missouri $13,864 $33,489

Average per All dealerships dealership State (millions) (thousands)Montana $2,915 $25,792Nebraska $5,264 $28,921Nevada $5,252 $50,990New Hampshire $4,720 $33,239New Jersey $24,180 $51,337New Mexico $3,831 $32,189New York $41,943 $47,233North Carolina $21,484 $36,475North Dakota $3,201 $35,570Ohio $26,893 $35,385Oklahoma $18,674 $67,905Oregon $7,794 $32,611Pennsylvania $28,437 $30,381Rhode Island $2,045 $40,107South Carolina $9,347 $35,675South Dakota $2,788 $27,603Tennessee $14,176 $41,090Texas $70,832 $58,539Utah $6,476 $45,927Vermont $1,801 $20,470Virginia $18,033 $36,066Washington $13,267 $40,203West Virginia $3,916 $27,193Wisconsin $12,872 $25,092Wyoming $1,365 $21,671Total U.S. $730,082 $41,329

Source: NADA and U.S. Department of Commerce

Source: NADA

Share of total dealership sales dollars, 2013

By department

Source: NADA

Service and parts

11.6%

New vehicles 57.1%Used vehicles

31.3%

The dollar sales per franchised new-car dealership increased by 8.8 per-cent 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 department (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.


2013

0

250

$500

Average dealership, in thousands of dollars

2004 2005 2006 2007 2008 2009 2010 2011 2012 2013

For the third year in a row, net prof-it in the new-vehicle department remained positive in 2013. During 2006-2010, net profit in the new-vehicle 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 pre-vious year.

For the fifth year in a row, net profit in the used-vehicle department was positive in 2013. The profit per-used-vehicle retailed increased to $254 from $194 the previous year.

Total service and parts prof its 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.

Dealership Financial Trends

New-vehicle department net profit

Service and parts department net profit

Source: NADA

0-10

100

$200

Average dealership, in thousands of dollars, including F&I

2004 2005 2006 2007 2008 2009 2010 2011 2012 2013

Used-vehicle department net profit

Source: NADA

Source: NADA

0

2.0

4.0Inventory (in millions)

Domestic

Import

Domestic

Import

Total

2004 20130

Days’ supply

2004 201340

60

80


The New-Vehicle Department

New-vehicle inventories and days’ supply

New-vehicle sales, by month

2013 2013 SAAR1 2012 2012 SAAR1 % change Actual (in millions) Actual (in millions) 2012 to 2013

January 1,039,201 15.2 910,190 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 1Seasonally adjusted annual rate

Source: WardsAuto and NADA Source: WardsAuto and NADA

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 com-prised 48.8 percent of total new-vehi-cle 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.

New vehicles retailed

3.0

4.5

6.0%

2004 2013

Gross margin as percentage of selling price

Source: NADA


New light-duty vehicle sales, by year Number of new vehicles sold and selling price

New-vehicle sales and market share, by manufacturer

General Other Year Chrysler Ford Motors Toyota Honda Nissan Volkswagen imports Total

2004 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

13.08% 19.39% 27.61% 12.21% 8.27% 5.07% 1.98% 12.38%

2005 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

13.60% 18.34% 26.30% 13.34% 8.63% 6.36% 1.81% 11.62%

2006 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

12.98% 17.26% 24.65% 15.41% 9.15% 6.18% 1.97% 12.41%

2007 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

12.90% 15.55% 23.77% 16.29% 9.64% 6.64% 2.01% 13.19%

2008 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

10.97% 14.72% 22.40% 16.81% 10.83% 7.21% 2.36% 14.70%

2009 927,200 1,656,100 2,072,200 1,770,200 1,150,800 770,100 296,200 1,758,900 10,401,700

8.91% 15.92% 19.92% 17.02% 11.06% 7.40% 2.85% 16.91%

2010 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

9.34% 16.49% 19.14% 15.26% 10.65% 7.86% 3.10% 18.15%

2011 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

10.69% 16.58% 19.66% 12.92% 9.01% 8.19% 3.47% 19.49%

2012 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

11.37% 15.27% 17.98% 14.42% 9.85% 7.91% 3.03% 20.17%

2013 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

11.53% 15.69% 17.95% 14.40% 9.82% 8.04% 2.63% 19.95%

10-Year 1,697,675 2,398,325 3,213,135 2,119,835 1,382,335 1,008,265 354,405 2,251,331 14,425,296Average 11.8% 16.6% 22.3% 14.7% 9.6% 7.0% 2.5% 15.6%

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%

New vehicles Average sold per retail Year dealership 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: WardsAuto

Source: WardsAuto

Source: NADA

Total new light-vehicle sales rose by 7.5 percent in 2013.

As % of new- and used-vehicle department gross profit

0

20

2004 2005 2006 2007 2008 2009 2010 2011 2012 2013

Total

Finance and insurance

Service contract and other

40%

25

35

45%

2004 2005 2006 2007 2008 2009 2010 2011 2012 2013

As % of new vehicles retailed


F&I, Service Contracts

Aftermarket income at new-car deal-erships rose slightly in 2013.

Combined sales from F&I, service contracts and other products account-ed for 38.8 percent of gross profit in the new- and used-vehicle depart-ments in 2013, up from 36.9 percent the previous year.

F&I sales accounted for 22.8 per-cent 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 percent-age points.

New-vehicle service contract pen-etration rates declined slightly by 0.2 percentage points in 2013, while used-vehicle service contract penetration rates declined by 1.5 percentage points.

Aftermarket income

Service contract penetration rates

Source: NADA

Source: NADA


0

10

20

02004 2005 2006 2007 2008 2009 2010 2011 2012

In millions

Total

Retail

Wholesale

2013

14,000

16,500

$19,000

2004 2005 2006 2007 2008 2009 2010 2011 2012 2013

The Used-Vehicle Department

Used-vehicle sales by new-vehicle dealerships

Average retail selling price of used vehicles retailed by new-light dealerships, 2013

10-Year AverageRetail . . . . . . . . . . . 10 .17Wholesale . . . . . . . . . 7 .07Total . . . . . . . . . . . . 17 .25

Of the 17.4 million used vehicles sold by franchised new-car dealers in 2013, 9.9 million were retailed and 7.5 mil-lion were wholesaled.

Used-vehicle sales were up 1.7 per-cent—with 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.

Sources of used vehicles retailed by dealerships, 2013

Source: NADA

Source: NADA

Source: NADA

Other 3%

Auction purchase

25%

Street purchase 5%

Trade-in on new vehicle

41%

Trade-in on used vehicle

25%

0

10

$20

Customermechanical

Customerbody

Warranty Sublet Internal Other

Service labor sales

0

10

$20

Customermechanical

Customerbody

Other

Parts sales

In billions of dollars

Wholesale Counter Warranty Internal


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 fran-chised new-car dealers was $14.4 billion in service and parts—all 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 deal-erships rose to $7 billion from $6.8 billion the previous year.

Service, Parts and Body Shop

Dealerships’ total service and parts sales, 2013

Profile of dealerships’ service and parts operations, 2013 Average dealership All dealers

Total service and parts sales $4,789,222 $84.59 billion

Total gross profit as percent of service and parts sales 46.03%

Total net profit as percent of service and parts sales 6.09%

Total number of repair orders written 14,002 247 million

Total service and parts sales per customer repair order $250

Total service and parts sales per warranty repair order $236

Number of technicians (including body) 15 264,945

Number of service bays (excluding body) 20 353,260

Total parts inventory $309,498 $5.47 billion

Average customer mechanical labor rate $101

Source: NADA

Source: NADA


5

8

$11

2004 2005 2006 2007 2008 2009 2010 2011 2012 2013


70

80

$90

2004 2005 2006 2007 2008 2009 2010 2011 2012 2013


30

40

50%

2004 2013

Percent of total dealership population

Total dealership body shop sales

Dealerships’ total service and parts sales Dealerships’ service and parts sales, 2013

Dealerships operating on-site body shops


Service labor salesCustomer Mechanical $15 .82Customer Body 3 .93Warranty 6 .84Sublet 2 .65Internal 6 .72Other 1 .48

Total service labor $37.45

Parts salesCustomer Mechanical $13 .33Customer Body 3 .10Wholesale 12 .56Counter 2 .57Warranty 7 .58Internal 4 .48Other 3 .52

Total parts $47.15

Total service and parts $84.59

Warranty work performed by franchised new-car dealers in 2013 was $14.4 billion in service and parts—all at no cost to the customer.

Source: NADA

Source: NADASource: NADA

Source: NADA

In thousands

2004 2005 2006 2007 2008 2009 2010 2011 2012 2013

Total of all dealerships (left scale)Average number per dealership (right scale)

800

1,000

1,200

30

50

60


In 2013, total dealership employment reached 1,008,800 people up 3.4 per-cent from 2012; the average dealer-ship in operation employed 57 people in 2013 up from 55 people during the previous year.

The number and type of employ-ees vary significantly among dealer-ships depending on store characteris-tics such as size, location, makes han-dled, and distribution of sales among departments. The makeup of total dealership employment in 2013 was:

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 mil-lion. The total payroll for all deal-erships combined was $53.7 billion. Dealerships provided, on average, just over 12 percent of total retail payroll in their respective states.

Employment and Payroll

Estimated number of new-car dealership employees in 2013, by state

Estimated number of employees in new-car dealerships

Total number Average number State (all dealers) (per dealership)Alabama 14,016 48Alaska 2,047 60Arizona 24,088 98Arkansas 8,421 39California 110,092 80Colorado 16,755 65Connecticut 13,162 49Delaware 3,991 74Florida 67,088 79Georgia 29,613 58Hawaii 3,914 57Idaho 5,140 47Illinois 40,086 53Indiana 19,985 47Iowa 11,816 36Kansas 9,786 42Kentucky 11,642 46Louisiana 15,238 53Maine 5,128 41Maryland 21,553 70Massachusetts 21,281 53Michigan 33,135 52Minnesota 18,375 51Mississippi 7,392 38Missouri 20,417 49

Total number Average number State (all dealers) (per dealership)Montana 3,846 34Nebraska 7,029 39Nevada 7,663 74New Hampshire 6,227 44New Jersey 29,293 62New Mexico 6,588 55New York 46,323 52North Carolina 30,566 52North Dakota 3,806 42Ohio 39,425 52Oklahoma 15,874 58Oregon 11,980 50Pennsylvania 44,377 47Rhode Island 2,833 56South Carolina 14,348 55South Dakota 3,790 38Tennessee 19,361 56Texas 91,370 76Utah 8,394 60Vermont 2,899 33Virginia 27,854 56Washington 20,603 62West Virginia 5,883 41Wisconsin 22,248 43Wyoming 2,059 33Total U.S. 1,008,800 57

Source: NADA and U.S. Bureau of Labor Statistics



Total of all dealerships (left scale)Average per dealership (right scale)

$ billions $ thousands

30

35

40

45

50

55

60

2004 20132,000

2,500

3,000

3,500

4,000

Average weekly earnings of new-car dealership employees in 2013, by state

Annual payroll of new-car dealerships

Dealership employment by position in 2013

2013 annual payroll of new-car dealerships, by state

Alabama $975

Alaska $1,049

Arizona $1,039

Arkansas $958

California $1,113

Colorado $1,076

Connecticut $1,160

Delaware $1,031

Florida $1,041

Georgia $1,036

Hawaii $1,093

Idaho $901

Illinois $1,017

Indiana $906

Iowa $927

Kansas $951

Kentucky $948

Louisiana $993

Maine $919

Maryland $1,066

Massachusetts $1,195

Michigan $1,064

Minnesota $936

Mississippi $929

Missouri $991

Montana $888

Nebraska $952

Nevada $1,133

New Hampshire $1,094

New Jersey $1,242

New Mexico $925

New York $1,159

North Carolina $969

North Dakota $960

Ohio $929

Oklahoma $1,001

Oregon $942

Pennsylvania $972

Rhode Island $1,056

South Carolina $957

South Dakota $990

Tennessee $1,034

Texas $1,138

Utah $939

Vermont $949

Virginia $1,032

Washington $1,020

West Virginia $870

Wisconsin $824

Wyoming $959

Total U.S. $1,038

Total all Average per dealerships dealership State ($ billions) ($ millions)Alabama $0.70 $2.38Alaska $0.11 $3.24Arizona $1.28 $5.23Arkansas $0.41 $1.90California $6.28 $4.56Colorado $0.92 $3.58Connecticut $0.78 $2.91Delaware $0.21 $3.90Florida $3.58 $4.20Georgia $1.57 $3.07Hawaii $0.22 $3.18Idaho $0.24 $2.16Illinois $2.09 $2.78Indiana $0.93 $2.19Iowa $0.56 $1.70Kansas $0.48 $2.05Kentucky $0.57 $2.22Louisiana $0.77 $2.67Maine $0.24 $1.95Maryland $1.18 $3.85Massachusetts $1.30 $3.26Michigan $1.81 $2.84Minnesota $0.88 $2.46Mississippi $0.35 $1.80Missouri $1.04 $2.50Montana $0.17 $1.55Nebraska $0.34 $1.88Nevada $0.44 $4.32New Hampshire $0.35 $2.46New Jersey $1.86 $3.96New Mexico $0.31 $2.62New York $2.75 $3.10North Carolina $1.52 $2.58North Dakota $0.19 $2.08Ohio $1.88 $2.47Oklahoma $0.81 $2.96Oregon $0.58 $2.42Pennsylvania $2.21 $2.36Rhode Island $0.15 $3.01South Carolina $0.70 $2.69South Dakota $0.19 $1.90Tennessee $1.03 $2.97Texas $5.33 $4.40Utah $0.40 $2.86Vermont $0.14 $1.60Virginia $1.47 $2.95Washington $1.08 $3.26West Virginia $0.26 $1.82Wisconsin $0.94 $1.83Wyoming $0.10 $1.61Total U.S. $53.71 $3.04





Other

29.9%

Sales

20.6%

Managers

23.4%

Service

26.1%

Percent of total


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 operation–scrappage, by year Total vehicles New vehicle Scrappage as % in use registrations Scrappage 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%

Total light vehicles in operation in 2013, by state 1

Passenger Light Trucks Total State cars GVW 1–3 vehiclesAlabama 2,109,261 2,518,015 4,627,276Alaska 182,650 466,134 648,784Arizona 2,476,785 2,916,861 5,393,646Arkansas 961,589 1,544,633 2,506,222California 14,657,068 13,214,743 27,871,811Colorado 1,924,973 2,696,944 4,621,917Connecticut 1,540,195 1,281,133 2,821,328Delaware 392,147 387,911 780,058D.C. 219,344 101,359 320,703Florida 7,731,046 7,103,123 14,834,169Georgia 3,892,464 4,440,869 8,333,333Hawaii 471,412 581,531 1,052,943Idaho 583,195 930,477 1,513,672Illinois 5,082,558 4,975,299 10,057,857Indiana 2,480,315 2,964,358 5,444,673Iowa 1,267,963 1,677,717 2,945,680Kansas 1,135,308 1,532,965 2,668,273Kentucky 1,680,173 2,045,428 3,725,601Louisiana 1,495,417 2,193,932 3,689,349Maine 510,521 642,107 1,152,628Maryland 2,405,498 2,161,900 4,567,398Massachusetts 2,575,640 2,304,820 4,880,460Michigan 3,783,589 4,339,618 8,123,207Minnesota 2,208,770 2,564,916 4,773,686Mississippi 1,149,522 1,476,533 2,626,055Missouri 2,447,646 2,912,565 5,360,211

Passenger Light Trucks Total State cars GVW 1–3 vehiclesMontana 415,684 783,275 1,198,959Nebraska 787,664 1,061,455 1,849,119Nevada 959,461 1,082,136 2,041,597New Hampshire 581,917 625,980 1,207,897New Jersey 3,724,647 3,120,320 6,844,967New Mexico 733,062 1,066,516 1,799,578New York 5,662,471 5,270,861 10,933,332North Carolina 3,814,523 4,236,773 8,051,296North Dakota 256,748 473,692 730,440Ohio 5,073,009 4,958,692 10,031,701Oklahoma 1,712,545 2,272,527 3,985,072Oregon 1,491,450 1,848,668 3,340,118Pennsylvania 5,249,369 5,372,794 10,622,163Rhode Island 456,081 341,679 797,760South Carolina 1,912,929 2,213,095 4,126,024South Dakota 343,332 550,912 894,244Tennessee 2,456,340 3,062,978 5,519,318Texas 8,480,399 11,852,695 20,333,094Utah 1,073,310 1,282,973 2,356,283Vermont 256,928 301,026 557,954Virginia 3,414,335 3,517,585 6,931,920Washington 2,846,969 3,208,544 6,055,513West Virginia 614,068 923,876 1,537,944Wisconsin 2,345,397 2,665,559 5,010,956Wyoming 186,286 430,221 616,507Total 120,213,973 132,500,723 252,714,696

Source: IHS Automotive 1Including District of Columbia (D.C.)

Source: IHS Automotive


In millions

0

50

100

150

200

250

350

2004 2013

Total

Trucks

Cars

300

Total vehicles in operation, by year

8

9

10

11

12Cars

All light vehiclesLight trucks

2004 2013

Average age of passenger cars and light trucks, by year

60

80

100

110

120

140%In millionsTotal cars and trucks

Percent

2004 2013

Number of vehicles scrapped during year(left scale)

Scrappage as % of new-vehicle registrations(right scale)

70

8

9

10

11

12

13

14

15

16

17

90

130

Estimated vehicle scrappage, by year




Total new-vehicle registrations, by state 1

State 2012 2013Alabama 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 2013Montana 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

Source: IHS Automotive 1Including District of Columbia (D.C.)


400

600

$800Per new unit sold

2013201220112010200920082007200620052004

Advertising and the Dealership

Total dealership advertising

Advertising expenditures, by medium, 2013

Source: NADA

Percent of total

Newspaper 15.5%

Radio 14.5%

Television 20.8%

Direct mail 11.0%

Other 5.3%

Internet 33.0%

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 news-paper, print and radio has declined since 2003—with 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.

2004 20135

7

$9In billions of dollars

Total dealership advertising expenditures

Source: NADA

Estimated advertising expenses per dealership in 2013By number of new units sold Average of all 750 or By media used dealerships 1–149 150–399 400–749 moreNewspapers $66,253 $26,910 $32,907 $47,892 $81,020Radio $65,690 $19,336 $28,770 $62,840 $91,617Television $97,657 $17,451 $36,598 $92,694 $162,376Direct Mail $46,208 $11,064 $19,999 $39,139 $75,002Internet $111,822 $26,828 $52,798 $95,557 $172,453Other $42,114 $11,046 $21,364 $35,249 $61,476Total $429,744 $112,635 $192,436 $373,371 $643,942Total 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 $410Source: NADA

Source: NADA


2013201220112010200920082007200620052004

Truck classes 4–8 Percent of Class 4 5 6 7 8 Total market

Freightliner 0 1,754 18,899 23,030 67,568 111,251 31.6%

Ford 3,166 39,302 12,487 3,169 0 58,124 16.5%

International 29 2,369 9,875 11,587 26,555 50,415 14.3%

Kenworth 0 24 1,193 3,289 25,943 30,449 8.7%

Peterbilt 0 85 181 4,574 24,717 29,557 8.4%

Volvo Truck 0 0 0 0 20,658 20,658 5.9%

Mack 0 0 0 0 16,289 16,289 4.6%

Isuzu 7,570 4,048 0 0 0 11,618 3.3%

Dodge/Ram 0 10,901 0 0 0 10,901 3.1%

Hino 0 880 4,728 1,833 0 7,441 2.1%

Western Star 0 0 0 0 3,008 3,008 0.9%

Mitsubishi Fuso 1,144 666 1 2 0 1,813 0.5%

UD Trucks 0 16 111 40 0 167 0.0%

Other 0 0 0 0 46 46 0.0%

Total 11,909 60,045 47,475 47,524 184,784 351,737 100.0%

Sales of medium- and heavy-duty trucks (classes 4-8) increased to 351,737 units in 2013—a 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 year—Ford moved to second place while International moved to third place. Ford had 16.5 percent of the medium- and heavy-duty truck mar-ket, up from 12.9 percent, while International had 14.3 percent of the market, down from 19.8 percent.

New-Truck Dealerships

Number of medium- and heavy-duty truck dealerships

U.S. retail sales and market share–calendar year 2013

Truck categoriesTrucks are classified by gross vehicle weight

Class 1 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: NADA

Source: WardsAuto

Source: WardsAuto

ANNUAL FINANCIAL PROFILE OF AMERICA’S FRANCHISED NEW-CAR DEALERSHIPS

2014www.nada.org/nadadata

Documents

ANNUAL FINANCIAL PROFILE 2014 OF AMERICA’S …m.oeconnection.com/media/95753/nada_data_2014_05282014.pdf · NADA Data 2014—the annual financial profile of America’s franchised