Automobile and Other Motor Vehicle Merchant Wholesalers — Business Survival Rate

An estimated 70% of automobile and other motor vehicle merchant wholesalers businesses survive their first 5 years, based on U.S. Census Bureau Business Dynamics Statistics. The annual business closure rate is 6.9%.

70%
5-Year Survival Rate
+1.6%
Net Growth Rate
12,831
Total Firms
992
Annual Firm Deaths

Is Automobile and Other Motor Vehicle Merchant Wholesalers a Good Business to Start?

With a 70% five-year survival rate, automobile and other motor vehicle merchant wholesalers has an above-average survival rate compared to the national average of roughly 50%. This makes it a relatively safe industry to enter — businesses here tend to find stable demand and sustainable economics.

The annual exit rate of 6.9% is lower than many sectors, suggesting that once established, these businesses have staying power. That said, lower failure rates often correlate with higher barriers to entry or established competition.

Entry vs. Exit Rates

Annual rate of new businesses opening versus existing businesses closing.

Entry Rate (new businesses)6.0%
Exit Rate (closures)6.9%

Net negative: more businesses closing than opening (-0.9 pp spread).

Job Creation & Destruction

11.4%
Job Creation Rate
9.9%
Job Destruction Rate
+1.6%
Net Job Growth

The industry is adding jobs faster than losing them — a positive sign for both workers and new business owners looking to hire. Total employment: 423,352 workers across 12,831 firms.

Want to know how much automobile and other motor vehicle merchant wholesalers businesses actually make?

See full revenue benchmarks for Automobile and Other Motor Vehicle Merchant Wholesalers →

Frequently Asked Questions

What percentage of automobile and other motor vehicle merchant wholesalers businesses fail?
Approximately 30% of automobile and other motor vehicle merchant wholesalers businesses fail within their first 5 years. The annual closure rate is 6.9%, with 992 firms closing permanently in 2023.
Is the automobile and other motor vehicle merchant wholesalers industry growing or shrinking?
The automobile and other motor vehicle merchant wholesalers industry is currently stable with a net job creation rate of +1.6% per year. New businesses are entering at 6.0% while 6.9% close annually.

Source: U.S. Census Bureau, Business Dynamics Statistics (2023). Survival rate estimated from annual exit rates.