NYC New-Car Dealers Create Jobs, Drive $27.1 Billion Into Local Economy
The New Economic Impact Study shows dealers are responsible for 58,000 jobs, and for collecting $1.83 billion in taxes for state and local governments.
by Staff
October 8, 2013
2 min to read
NEW YORK, N.Y. — Franchised new-car dealers in the New York metro area sold 429,000 new and used cars — injecting $27.1 billion into the economy while helping to sustain a workforce of nearly 58,000, the Greater New York Automobile Dealers Association (GNYADA) reported today. The report also showed that dealers generated $1.83 billion in tax revenue for state and local governments last year.
“New York City auto dealers are an enormously important part of the local and state economy because of the revenue they generate and the jobs they produce,” said Mark Schienberg, president of the GNYADA. “Directly and indirectly, New York City dealers, along with their counterparts in the surrounding area, provide nearly 58,000 jobs to area residents, and are a key part of the region’s economic growth and development.”
Ad Loading...
“An average dealer employs 83 people, of which more than a third are in high-paying jobs in the service department. Dealers also purchase more advertising than any other sector, providing a lifeline to many local broadcast, print and online media companies,” said Schienberg, noting that dealership advertising totaled $388 million last year.
Here are some of the key economic impact findings:
$27.1 billion in vehicle sales (up 12.4 percent from last study in 2010)
429,000 vehicles sold (up 10 percent)
More than 57,000 jobs, directly and indirectly (up 3.1 percent)
58 percent higher salaries than average NYS retail employees
Auto retail jobs account for 10 percent of all retail jobs in NYS
$1.83 billion in tax revenue for state and local government (up 7 percent)
$388 million in dealership advertising spending
$655 million in capital improvements to dealership facilities (three-year period)
Average dealership employs 83 people
Average dealership payroll expenses exceeded $5.1 million
Average dealership repaired and serviced over 20,500 vehicles in 2012
The report provides an in-depth analysis of the economic impact of New York metro area new-car and -truck retailers on the New York economy. It includes a review of direct and indirect employment, personal income, tax collections generated by area automobile dealers and a review of dealership financial statistics and operations.
Headquartered in Whitestone, N.Y., the GNYADA represents nearly 600 franchised automobile dealerships in the metro area of New York.
The increasingly important profit center continued making gains in the first quarter, according to StoneEagle data, ancillary products proving more popular as consumers hold onto their buys longer.
For dealer-owned reinsurance entities, avoiding volatility entirely can mean falling behind inflation and missing market rebounds that drive long term surplus growth. Missing just a handful of strong market days can materially impact cumulative returns—an important reminder for long horizon trust and investment strategies.
What’s the atmosphere saying about you to your customers? You can make minor adjustments and additions that transform your space into one that creates trust with the people on the other side of the desk.
How can auto dealerships help F&I managers fulfill their vital role in the most effective ways? Industry expert Rick McCormick shares his insights on the best ways to train these professionals and help them maintain good habits.
Some of it should be given to the customer, but that doesn’t mean the F&I office relinquishes the process. In fact, a different approach both builds trust and boosts sales.
Talk to F&I customers like you’d talk to a friend, without industry lingo or sales-like questions, and use hard proof to show, not tell, them about a need.
