Across the nation, auto dealers have invested an approximate total of 4 billion in their businesses, which breaks down to an average of million per location.
Many car dealerships do more than sell new and/or pre-owned cars, too. Additionally, many dealers also have auto service centers and a body shop that provide the fee-based services drivers need to repair, maintain and modify their vehicles.
These services can add a significant amount to a dealership’s bottom line and give consumers reasons to return to a given location many times over in between the times they buy or lease a car.
Even though franchised new-car dealerships sold a record-setting number of new cars and light trucks last year, new vehicle sales only account for 25.8 percent of automobile purchases in the United States.
This means 74.2 percent of automobile purchases are for previously owned vehicles.
With the car sales industry holding so much potential for continued growth, you may be eager to jump in the market but are unsure how you should go about starting a dealership.
The first step toward figuring out how to be a successful car dealer is deciding the kind of automobiles you want to sell.
According to IBISWorld, there are 133,029 used car dealers in the United States and they collectively employ 273,533 individuals.
The same source reports that there are 18,150 new car dealers operating in America.
This record-setting number marked a 6.9 percent increase over the industry’s revenue figure from 2014.
In its Used Car Dealers in the US: Market Research Report released in May, 2016, IBISWorld reports that the sale of pre-owned cars was responsible for 1 billion of the industry’s revenue, which was the result of a 3.2 percent annual growth rate between 20.