Nationally, consolidation in the number of franchised dealerships is expected to moderate after a large net loss of 1,550 in 2009 and 760 in 2010. Dealership groups are looking for acquisitions during 2011, according to published reports, and manufacturers’ efforts to reduce the number of dealership points in 2009 and 2010 resulted in a drop of more than 4 percent in the number of dealership rooftops for 2010.
Total dollar sales at the nation’s new-car dealerships increased 17 percent in 2010, the first full year of post-recession growth. Franchised dealers are major employers, as well as significant contributors to their communities’ economies, tax bases, and civic and charitable organizations. In 2010, the average dealership hired one additional worker, but because of dealership closings caused by bankruptcies, the recession, and vehicle manufacturer demands, total dealership employment nationally in 2010 fell to an estimated 892,300 employees from 912,600.
Annual Contributions of Florida’s New-Vehicle Dealers*
Florida’s dealers maintain a multi-BILLION dollar retail industry
Dealer sales as % of total retail sales in the state (#1 in the country)………………..16.0%
Total sales of all new-vehicle dealerships in Florida (2nd only to California)…….$38.9 billion
Average total sales per dealership (#1 in the country)………………………………..$46.2 million
Estimated number of new-car dealerships in Florida……………………………………842
Dealers provide thousands of well-paying jobs in Florida
Dealer payroll as % of total retail payroll in the state…………………………………11.1%
Annual payroll of new-car dealerships………………………………………………….$2.92 billion
Average annual payroll per dealership ………………………………………………..$3.47 million
Average annual earnings of new-vehicle dealership employees ………………….$47,806
Total number of new-car dealership employees in Florida …………………………..61,116
Average number of employees per dealership ………………………………………….73
Dealers generate hundreds of millions of dollars of tax revenue for state and local government through:
- Sales Tax Revenue
- Corporate Tax Revenue
- Payroll Tax Revenue
*Numbers reflect annual economic activity during 2010
Compiled by:
NADA Industry Analysis Division | 8400 Westpark Drive, McLean, VA 22102 | (800) 252-NADA
