-
The average dealership today requires an investment of $11.3 million, including physical facilities, land, inventory and working capital.
-
Nationwide, dealers have invested nearly $200 billion in dealership facilities.
-
Annual operating costs totaled $81.5 billion in 2013, an average of $4.6 million per dealership. These costs include personnel, utilities, advertising and regulatory compliance.
-
The vast majority—95.6 percent—of the 17,663 individual franchised retail automotive outlets are locally and privately owned. They generate billions in state and local taxes annually and provide significant employment opportunities that help build goodwill in the community.
-
Manufacturers benefit from the high return on capital invested in manufacturing vehicles, as opposed to the low margin in retailing them.
-
Dealers bear the cost and risks of these investments—at virtually no cost to the manufacturers—and provide a vast distribution channel that benefits the consumer.
The complete study is available on NADA’s “Get The Facts” website (http://www.nada.org/GetTheFacts).Additionally, NADA also recently released a study by noted auto industry consultant, MaryannKeller, entitled “Consumer Benefits of the Dealer Franchise System.” Ms. Keller’s study found that factory-direct sales of new cars—either sold online or through factory-owned and operated retail outlets—have not resulted in lower prices for car buyers or increased market share for manufacturers. This report is also available on the “Get The Facts” website.