Used Car Dealers Revenue Benchmarks
The average used car dealers business in the United States generates $4.8M in annual revenue, according to the U.S. Census Bureau Statistics of U.S. Businesses (SUSB 2021). There are 23,713 used car dealers businesses in the U.S., employing 163,014 workers with an average profit margin of 4.0%. The average employee in this industry earns $60K per year (Bureau of Labor Statistics QCEW 2023).
What Does a Used Car Dealers Business Actually Do?
Businesses that buy used vehicles at wholesale (auction, trade-ins, direct from consumers) and resell them to retail buyers. Revenue comes from the retail-wholesale spread plus F&I (financing and insurance) products sold on top.
Who buys: Retail consumers financing or paying cash for a used vehicle.
How this is different: Independents typically operate on smaller lots (30–200 units) with higher per-unit gross vs franchise dealers who move volume.
Average Revenue
$4.8M
per year
Profit Margin
4.0%
industry average
Revenue / Employee
$699K
per year
Total Businesses
23,713
in the US
Est. Owner Income
$192K
small business avg
Labor Cost
8.0%
of revenue
Avg Employee Wage
$60K
per year (BLS)
Market Saturation
7.2
firms per 100K people
How Much Do Used Car Dealers Charge?
Used-car dealers earn a spread between wholesale and retail. Gross per unit is the operative metric.
| Service | Typical range |
|---|---|
Front-end gross per car (independent) | $1,500–3,500 |
Front-end gross per car (franchise) | $1,200–2,800 |
F&I income per car | $1,000–2,500 |
Service dept gross per car sold | $400–1,200 |
Ranges based on industry rate surveys and typical published pricing. Actual quotes vary by city, business size, and job complexity.
Complete used car dealers business plan
A 12-section data-backed business plan for a used 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 used 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 | $3.2M | Wholesale cost of merchandise purchased for resale. Retail's biggest expense. |
Wages & benefits | $8 | $384K | Payroll for all employees at the business (owner comp not included for small owner-operators). |
Rent & facilities | $9 | $423K | Rent or mortgage on business location plus utilities tied to the space. |
Marketing & advertising | $4 | $211K | Google/Meta ads, SEO, print, referral fees, event sponsorships. |
Other operating costs | $9 | $423K | Utilities, POS fees, shrinkage, insurance, store maintenance. |
Net profit | $4 | $192K | 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 Used Car Dealers Business?
Startup Cost
$75K – $400K
Break-Even
15 months
5-Year Survival Rate
48.0%
Related Industries
Frequently Asked Questions
- What does a used car dealers business do?
- Businesses that buy used vehicles at wholesale (auction, trade-ins, direct from consumers) and resell them to retail buyers. Revenue comes from the retail-wholesale spread plus F&I (financing and insurance) products sold on top. Retail consumers financing or paying cash for a used vehicle.
- How much do used car dealers charge?
- Used-car dealers earn a spread between wholesale and retail. Gross per unit is the operative metric. See the pricing table above for typical rates by service type.
- How much does the average used car dealers make per year?
- The average used car dealers business generates $4.8M in annual revenue, based on U.S. Census Bureau data (SUSB 2021). After expenses, the estimated owner profit is $192K per year at a 4.0% profit margin.
- How many used car dealers businesses are there in the US?
- There are 23,713 used car dealers businesses operating in the United States, employing a total of 163,014 workers.
- How much does it cost to start a used car dealers business?
- Startup costs for a used car dealers business typically range from $75K to $400K, with a 5-year survival rate of 48.0%.
- What is the average salary in the used car dealers industry?
- The average employee in the used car dealers industry earns $60K per year, according to Bureau of Labor Statistics data (QCEW 2023).
Industry Growth & Survival
The used 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 used 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 used car dealers industry earns $60,100/year. This is near the national average of ~$65K. With 26,837 establishments employing 171,122 people, the typical business has about 6 employees.
Industry Trend (2000–2023)
The used car dealers industry has declined 15% since 2000 (from 42,851 to 36,288 firms).
See full historical statistics →Compare Used Car Dealers revenue with other industries: