NADA: Employment, Payroll Up for New-Car Dealers
U.S. franchised auto dealers paid over $66 billion to more than 1 million workers in 2018, a 1.9% year-over-year increase that pushed the average employee’s pay to $1,134 per week.

The average American new-car dealership employee earned $1,134 per week last year, a 1.8% increase from 2017, according to NADA data.
Photo by TeroVesalainen via Pixabay
TYSONS, Va. — Employment and payroll at U.S. new-car dealerships continued to rise in 2018, according to the latest report released today by the National Automobile Dealers Association. In 2018, the nation’s 16,753 franchised new-car dealerships employed 1,136,600 workers, up 0.5% from the previous year, according to NADA Data 2018.
“Direct employment at new-car dealerships once again topped 1.1 million employees at the end of 2018,” said NADA Senior Economist Patrick Manzi. “In addition to direct employment provided by new-car dealerships, hundreds of thousands of other jobs in local communities are dependent on dealerships.”
Payroll at new-car dealerships topped $66.5 billion in 2018, up 1.9% from the previous year. On average, dealership employees earned $1,134 per week, up 1.8% from 2017.
“For the past several years, dealership employees have seen steady increases in their incomes as well as their total compensation,” Manzi added. “Dealership jobs offer compensation that is significantly higher than other retail sectors, and dealers continue to boast one of the highest average salaries of all industries.”
Other highlights from NADA Data 2018 include:
For the second consecutive year, total sales (new- and used-car sales plus service, parts, F&I, and more) topped $1 trillion.
At the end of 2018, the average selling price of a new and used vehicle sold at franchised new-car dealerships was $35,608 and $20,586, respectively.
Net pretax profit per dealership as a percentage of total sales (new- and used-vehicle sales, service, parts, F&I, and body shop) continued to decline: 2016 (2.5%); 2017 (2.3%); and 2018 (2.2%)
Since 2009, service and parts sales on average per dealership increased by 5.5% per year on an annualized basis.
To read the full report, click here.
Originally posted on Auto Dealer Today
More Showroom

California Sees Quarterly Gains
California’s new-vehicle market saw a boost in hybrids in the third quarter and its first overall quarterly market gain of the year.
Read More →
New-Vehicle Prices Stay Put
Affordability pressures and model availability shaped new-vehicle sales in September, according to an analysis by Kelley Blue Book.
Read More →
EV Buyer Consideration Shifts
What drives American consumers to purchase an electric vehicle is shifting as the question moves away from Should I?' to 'Which features and experience do I want to have?'
Read More →
Year-to-Date Auto Sales Holding Their Own
A forecast through August shows that automakers have shifted strategies to keep deliveries and revenues up despite tariffs and other economic challenges.
Read More →
Slow to Robo
Ten years of polling consumers shows autonomous vehicles’ profiles have risen considerably, but even more people now want at least some level of control if they go that route.
Read More →
Dealers a Little Down
A third-quarter Cox Automotive survey finds them in a mixed mood, bummed by fallen customer traffic but encouraged by better profits, costs and EV interest.
Read More →
European EV Sales Skyrocket
The EV market on the continent held strong in July with almost 25% of new-car sales being fully electric units, a stark contrast to the U.S., where EV sales declined about 42%.
Read More →
Mitsubishi Unveils U.S. Plan
The automaker announced a strategy that includes an expanded lineup and dealership presence, along with more ‘rugged’ and electric models.
Read More →
Used Lots Getting the Business
Many consumers are seeking out the units to save money, and the demand – higher in July than normal – is keeping supply limited and prices up.
Read More →
Used Market Stabilizes
The Carfax Used Car Index noted a major drop in used-vehicle price increases in July after several months of hikes.
Read More →