New Car Dealers Revenue Benchmarks
The average new car dealers business in the United States generates $62.7M in annual revenue, according to the U.S. Census Bureau Statistics of U.S. Businesses (SUSB 2021). There are 16,862 new car dealers businesses in the U.S., employing 1,094,863 workers with an average profit margin of 4.0%. The average employee in this industry earns $84K per year (Bureau of Labor Statistics QCEW 2023).
What Does a New Car Dealers Business Actually Do?
Franchised dealerships selling new vehicles from a specific manufacturer (Toyota, Ford, etc.). Modern new-car dealers earn most of their profit from F&I products, service department work, and used-car operations rather than new-car margin.
Who buys: Retail consumers financing or leasing a new vehicle.
Average Revenue
$62.7M
per year
Profit Margin
4.0%
industry average
Revenue / Employee
$966K
per year
Total Businesses
16,862
in the US
Est. Owner Income
$2.5M
small business avg
Labor Cost
8.0%
of revenue
Avg Employee Wage
$84K
per year (BLS)
Market Saturation
5.1
firms per 100K people
How Much Do New Car Dealers Charge?
New-car dealers earn thin margins on the vehicle itself; F&I and service drive profitability.
| Service | Typical range |
|---|---|
Front-end gross per new car | $800–2,500 |
F&I income per car | $1,500–3,500 |
Service dept gross | $600–1,500 per car sold |
Parts sales | 20–35% of service revenue |
Ranges based on industry rate surveys and typical published pricing. Actual quotes vary by city, business size, and job complexity.
Complete new car dealers business plan
A 12-section data-backed business plan for a new car dealers business — executive summary, market analysis, competitive landscape, revenue model, 3-year financial projections, operations, marketing, staffing, funding request. Pre-populated with real Census, IRS, and BLS data on this industry. Free to view.
Cost Structure — Where Every $100 in Revenue Goes
Approximate P&L breakdown for the new car dealers industry. Labor share and net profit are grounded in Census SUSB and IRS SOI data. Other lines are split using sector-typical ratios.
| Category | Per $100 revenue | Per typical business | What's in it |
|---|---|---|---|
Cost of goods sold | $66 | $41.4M | Wholesale cost of merchandise purchased for resale. Retail's biggest expense. |
Wages & benefits | $8 | $5.0M | Payroll for all employees at the business (owner comp not included for small owner-operators). |
Rent & facilities | $9 | $5.5M | Rent or mortgage on business location plus utilities tied to the space. |
Marketing & advertising | $4 | $2.8M | Google/Meta ads, SEO, print, referral fees, event sponsorships. |
Other operating costs | $9 | $5.5M | Utilities, POS fees, shrinkage, insurance, store maintenance. |
Net profit | $4 | $2.5M | What remains for the owner or shareholders after all business expenses. |
Directionally accurate for a typical business in the industry. Individual businesses vary widely — a franchise may run a very different cost mix from an independent, and older established businesses often have lower labor share than newer ones.
Average Revenue by Business Size
Industry Dynamics (Census BDS 2023)
New Business Rate
7.91%
openings/year
Closure Rate
8.39%
closings/year
Net Job Growth
-0.41%
annual
Businesses Closed
3,041
in 2023
Firm Count Trend
Should You Start a New Car Dealers Business?
Startup Cost
$500K – $3.0M
Break-Even
8 months
5-Year Survival Rate
65.0%
Related Industries
Frequently Asked Questions
- What does a new car dealers business do?
- Franchised dealerships selling new vehicles from a specific manufacturer (Toyota, Ford, etc.). Modern new-car dealers earn most of their profit from F&I products, service department work, and used-car operations rather than new-car margin. Retail consumers financing or leasing a new vehicle.
- How much do new car dealers charge?
- New-car dealers earn thin margins on the vehicle itself; F&I and service drive profitability. See the pricing table above for typical rates by service type.
- How much does the average new car dealers make per year?
- The average new car dealers business generates $62.7M in annual revenue, based on U.S. Census Bureau data (SUSB 2021). After expenses, the estimated owner profit is $2.5M per year at a 4.0% profit margin.
- How many new car dealers businesses are there in the US?
- There are 16,862 new car dealers businesses operating in the United States, employing a total of 1,094,863 workers.
- How much does it cost to start a new car dealers business?
- Startup costs for a new car dealers business typically range from $500K to $3.0M, with a 5-year survival rate of 65.0%.
- What is the average salary in the new car dealers industry?
- The average employee in the new car dealers industry earns $84K per year, according to Bureau of Labor Statistics data (QCEW 2023).
Industry Growth & Survival
The new car dealers industry is relatively stable — with a net job growth rate of -0.4%. Entry and exit rates are balanced at 7.9% and 8.4% respectively.
Approximately 65% of new car dealers businesses survive their first 5 years. This is above the national average (~50%), making it a relatively safe industry to enter. In 2023, 3,041 firms in this industry closed permanently.
Employment & Wages
The average employee in the new car dealers industry earns $83,658/year. This is significantly above the national average of ~$65K, reflecting the skilled nature of this work. With 21,190 establishments employing 1,101,638 people, the typical business has about 52 employees. These tend to be larger operations requiring significant staffing investment.
Industry Trend (2000–2023)
The new car dealers industry has declined 15% since 2000 (from 42,851 to 36,288 firms).
See full historical statistics →Compare New Car Dealers revenue with other industries: