NADA: New-Car Dealerships Employ Record Numbers in 2016
According to the trade group’s NADA Data 2016 report, dealership employees had one of the highest average salaries of any industry.

TYSONS, Va. — New-car dealerships directly employed a record 1,131,900 workers last year, a 2.4% increase from 2015, according to the National Automobile Dealers Association’s NADA Data 2016.
On average, a dealership employed 69 workers last year, up from 66 in 2015. Average annual payroll was $65 billion, up 4.9%, or $3.9 million per dealership. The average weekly earnings of dealership employees grew 2.6% from 2015. Total annual compensation averaged $69,000 per employee, giving dealership employees one of the highest average salaries of any industry.
“Total dealership employment has consistently risen every year since the Great Recession,” said NADA Chief Economist Steven Szakaly. “In addition, hundreds of thousands of other local jobs are dependent on dealerships.”
Total dealership sales revenue, including new- and used-car sales (including F&I), parts, service and body shop, was $995.6 billion in 2016, up 6.1% from 2015. The average per dealership was $59.6 million.
The Top 10 states in dealership sales in 2016 were California, Texas, Florida, New York, Oklahoma, Pennsylvania, Illinois, Michigan, Ohio and New Jersey.
Despite rising auto sales and back-to-back record sales in 2015 and 2016, net pretax profit at new-car dealerships as a percent of total sales has remained flat, hovering at 2.5 percent for several years.
“The past seven years have been the longest period of new-vehicle sales growth since the 1920s,” Szakaly added. “For 2017, we expect new light-vehicle sales to continue on a strong trend, ending another year above 17 million.”
Looking at fixed-ops, new-car dealerships wrote 259 million customer repair orders in 2016, up 6.5% from the previous year. These orders included service, warranty and recalls.
“More and more consumers are choosing new-car dealerships for their service needs,” said Patrick Manzi, NADA senior economist. “Express service such oil changes and non-warranty repair orders at dealerships, on average, increased by 10.9% and 4.2%, respectively, in 2016. This increase demonstrates that consumers value the expertise of the highly-trained and factory-certified technicians employed at new-vehicle dealerships.”
Other highlights from NADA Data 2016 include:
The total number of new-car dealerships was 16,708, up 163 from 2015.
A record 17,465,020 new cars and light trucks were purchased or leased in 2016.
The average selling price of a new vehicle was $34,449, up 3% from 2015.
The average selling price of a used vehicle was $19,866, up 2.5% from 2015.
New vehicles sold per dealership, on average, was 1,045.
Service contract penetration on new- or used-vehicle purchases was 43.7%, up 1% from 2015.
New-car dealerships sold 14,968,206 million used vehicles, accounting for 37% of all used vehicles retailed.
To access the report, click here.
More F&I

Integrating Nontraditional F&I Products
The niche presents a strategic advantage for auto dealerships as they move to adapt to fast-changing consumer expectations in today’s market.
Read More →
Trust Is Personal
Technology, no matter how efficient, can’t replace what the human F&I manager can do, which is to bridge the divide between cyberspace and the in-store experience.
Read More →
Amplify 2026 Billed as Turning Innovation Into Results
Reynolds and Reynolds says its annual retail summit will connect dealers with practical strategies, peer insight, and technology-driven ideas.
Read More →
Own Your Outcome: F&I in the Digital Customer Journey
Finance has historically been the last step in the car-buying process, but it doesn’t have to be. The customer’s journey starts long before they arrive at the dealership, and so should F&I’s involvement.
Read More →
Tariffs Could Raise Insurance Premiums
As U.S. import tariffs affect repair costs, consumers might find it more affordable to replace a damaged vehicle, according to recent Insurify tariff analysis.
Read More →
Smaller Loans, Longer Terms
The youngest generation of car buyers is more likely to finance less expensive vehicles, more than half of generation Z consumers borrowing less than $25,000.
Read More →
New Lifetime Battery F&I Product Meant to Drive Dealer Traffic
EFG Cos. offering is intended to create lifetime auto dealer engagement with customers.
Read More →
The Psychology Behind Menus That Increase Add-On Sales
There is a science to crafting a menu that gives customers confidence in the choices presented, and moving the process outside the F&I office can further boost results.
Read More →
Why Your F&I PVR Is Misleading You
Here’s a handy checklist of the numbers to track in 2026 instead.
Read More →
Auto Consumer Anxiety Presents Opportunity
A survey of U.S. drivers found the majority are concerned about finances and the economy, but those fears make many ready to buy vehicle-protection products.
Read More →