2022 NADA Data Mid Year
2022 NADA Data Mid Year
2022 NADA Data Mid Year
R E P O R T
2022
ANNUAL FINANCIAL PROFILE OF AMERICA’S FRANCHISED NEW-CAR DEALERSHIPS
NATIONAL
AUTOMOBILE
DEALERS
ASSOCIATION
Overview
The NADA Data financial profile of new-car dealerships is now published twice a year—as a full
annual review at year-end and as a midyear update.
This midyear 2022 review features the many major milestones achieved by the retail auto
industry during the first half of 2022, including such highlights as:
• The nation’s 16,752 franchised light-vehicle dealers sold 6.8 million light-duty
vehicles.
• Total light-vehicle dealership sales topped $618 billion.
• Dealerships wrote nearly 135 million repair orders, with service and parts sales
totaling more than $68 billion.
At the end of first-half 2022, the industry was still feeling the effects of the semiconductor
microchip shortage that began in early 2021. Over the past 12 months, new-vehicle inventory on
the ground and in transit was persistently stuck between roughly 1 million and 1.2 million units,
about a third of the average level seen in 2018 and 2019. Dealers’ order books filled quickly,
Patrick Manzi and many dealers are still working through the order backlogs they have built up over the past
Chief Economist, NADA year. When vehicles arrived on dealer lots in the first half of the year, they sold quickly, and this
will also likely be true for the rest of 2022 and into 2023. Still, despite the challenges of a new-
vehicle shortage, the average dealership has performed very well through first-half 2022.
With tight supplies of vehicles and high demand from consumers, manufacturers pulled back
on incentive spending in the first half, and average incentive spending per unit fell each month
through June. Average incentive spending has decreased from a record high of over $4,700 per
unit in April 2020 to record lows of under $1,000 per unit in June 2022. The cuts to incentive
spending, OEM production mix and strong demand from consumers pushed new-vehicle average
transaction prices to record highs as well—just shy of $46,000 through June 2022. The shortage
of new vehicles caused used-vehicle wholesale and retail pricing to hit record highs near the end
of 2021 as many consumers and fleet buyers switched to the used market. While used-vehicle
wholesale prices have fallen slightly from their recent highs, we expect that used-vehicle values
will continue to be well above their pre-pandemic levels for as long as the industry is dealing with
the chip shortage and its limiting effects on new-vehicle inventories.
To improve the breadth of information provided in NADA Data, we offer a section focusing on
the new- and used-vehicle consumer, with in-depth data from Experian. These stats include
average monthly payment, average loan term, leasing and more.
CONTENTS
Franchised Dealership Workforce ..................................................................................2
New Light-Vehicle Dealerships ......................................................................................3
Dealership Financial Trends ..........................................................................................5
New Light-Vehicle Department ......................................................................................7
Used-Vehicle Department .............................................................................................9
Service and Parts Department .....................................................................................10
Body Shop Department ..............................................................................................12
Dealership Advertising ...............................................................................................13
Employment and Payroll ............................................................................................14
Note: NADA Data was first published in 1979, and some New- and Used-Vehicle Consumer................................................................................16
of the methodology and data sources have naturally
changed along the way. Therefore, previous reports may
not be directly comparable with the current version.
Total sample, franchised dealerships $1,383 $1,400 $1,470 $1,554 $1,987 ▲ 27.9%
Franchised dealers, same stores $1,387 $1,409 $1,494 $1,565 $2,026 ▲ 29.4%
Franchised dealers, same employees $1,432 $1,450 $1,560 $1,665 $2,126 ▲ 27.7%
BLS U.S. private sector $905 $934 $963 $1,015 $1,063 ▲ 4.8%
Total sample, franchised dealerships $1,061 $1,092 $1,142 $1,181 $1,392 ▲ 17.9%
Franchised dealers, same stores $1,070 $1,103 $1,160 $1,179 $1,428 ▲ 21.1%
Franchised dealers, same employees $1,108 $1,147 $1,219 $1,245 $1,450 ▲ 16.4%
BLS U.S. private sector $860 $886 $917 $966 $988 ▲ 3.3%
10
4.8%
5 3.3%
N/A
0
Total Sample Franchised Dealer Franchised Dealer BLS Auto Dealers BLS U.S. Private Sector
Franchised Dealerships Same Stores Same Employees
Source: Bureau of Labor Statistics, NADA
16,752
Arizona 246 New Hampshire 130
Missouri 372
Total U.S. 16,752 0
Montana 93 1-149 150-299 300-499 500-749 750-1,499 1,500+
Source: NADA Source: NADA
Number
2012 2013 2014 2015 2016 2017 2018 2019 2020 2021 2022
of stores
1-5 95.8% 95.5% 95.0% 94.8% 94.4% 94.3% 94.0% 93.8% 93.7% 93.2% 92.7%
6-10 2.9% 3.2% 3.4% 3.5% 3.8% 3.9% 4.1% 4.2% 4.2% 4.4% 4.8%
11-25 1.0% 1.1% 1.4% 1.5% 1.5% 1.5% 1.5% 1.6% 1.7% 1.9% 2.1%
26-50 0.1% 0.1% 0.1% 0.1% 0.1% 0.2% 0.2% 0.3% 0.3% 0.3% 0.3%
Greater than 50 0.1% 0.1% 0.1% 0.1% 0.1% 0.1% 0.1% 0.1% 0.1% 0.1% 0.1%
Source: NADA
525 $30.99 30
$30.00
$29.46 $29.43
$518.74
$503.86
$491.39 $494.76
475 $26.30
25
Share of Total Dealership Sales Dollars, 2021 vs. 2022, June YTD
Service, parts Service, parts
and body shop and body shop
10.6% 11.7%
2021 2022
Source: NADA
1,222,223
3
60
Import
50
2
Domestic 40
1
30 NEW-VEHICLE
DAYS’ SUPPLY 30 22
domestic import
0 20
2016 2019 2022 2016 2019 2022
Source: Automotive News, Wards Intelligence
Number of New Vehicles Sold and Selling Price by Year, June YTD
Year Average new vehicles sold Average retail selling price
D
SOL
2016 515 $34,221
2019
2020
2021
503
386
498
$36,402
$38,043
$40,232
$45,646
AVERAGE SELLING PRICE OF
NEW VEHICLES SOLD
2022 404 $45,646
(by new-vehicle dealerships)
Source: NADA
0
2016 2017 2018 2019 2020 2021 2022
Source: NADA
In thousands of dollars
$30.80 D
$31 SOL
29
27
$30,796
$24.54
25
19
2016 2017 2018 2019 2020 2021 2022
Source: NADA
10 Parts sales
8 Customer mechanical $11.14
$5.97
6
Customer body $2.01
$3.71 $4.20
4
$2.01 $2.18 Wholesale $11.57
2
Counter $2.18
0
Customer Customer Wholesale Counter Warranty Internal Other Warranty $5.97
mechanical body
Source: NADA Internal $3.71
Other $4.20
Dealerships’ Total Service and Parts Sales by Year, June YTD
Total parts $40.79
In billions of dollars
$68.89
$70 Source: NADA
$62.55 $60.43
$58.40
$68.89 billion
60 $56.75
$54.42 $51.94
40
30
2016 2017 2018 2019 2020 2021 2022
Source: NADA
Total service and parts sales per customer repair order $420
Total service and parts sales per warranty repair order $429
Source: NADA
2.5
2016 2017 2018 2019 2020 2021 2022
Source: NADA
$571
600
400
2016 2017 2018 2019 2020 2021 2022
Source: NADA
$4.26 billion
3.5
3 TOTAL DEALERSHIP
2016 2017 2018 2019 2020 2021 2022 ADVERTISING EXPENDITURES
Source: NADA
Average Dealership Advertising per New Unit Sold by Year, June YTD*
In dollars
$700 $695
$655
650 $645 $642
$640
$628
600
$541
550
500
2016 2017 2018 2019 2020 2021 2022
*Advertising expense includes advertising and sales promotion minus advertising rebates. Some advertising data is reported in one account that includes sales promotion and already is minus advertising rebates.
Source: NADA
64 65 23.6%
63
1.0 60 22.6%
Other service and Technicians
parts employees
0.9 50
2016 2017 2018 2019 2020 2021 2022 Source: NADA
Source: NADA
California $10.38 $7.99 Michigan $2.67 $4.33 Rhode Island $0.24 $4.54
Colorado $1.55 $6.16 Minnesota $1.34 $3.97 South Carolina $1.25 $4.94
Connecticut $1.03 $4.16 Mississippi $0.58 $3.33 South Dakota $0.29 $3.48
Idaho $0.48 $4.77 New Hampshire $0.63 $4.84 Virginia $2.38 $5.24
Illinois $3.14 $4.46 New Jersey $2.83 $6.21 Washington $1.77 $5.72
Indiana $1.62 $4.00 New Mexico $0.47 $4.22 West Virginia $0.39 $2.94
Iowa $0.88 $3.24 New York $4.15 $4.84 Wisconsin $1.46 $3.13
Kansas $0.65 $3.18 North Carolina $2.77 $4.86 Wyoming $0.13 $2.78
15,000
Market Share of New-Vehicle
10,000
Financing (Loan/Lease) by
5,000 Lender Type, 2021 vs. 2022, Q2
0 Q2 2021
Q2 2021 Q2 2022
56.2%
Captive
19.7%
20 Q2 2022
15
46.1%
Captive
10.5%
10 9.0%
5 25.9% 5.2%
Bank Finance
0
Q2 2021 Q2 2022
1.4% 21.4%
Source for all charts on this page: Experian Automotive. For more information, visit experian.com/automotive. BHPH/Other Credit union
500
$515
38.8%
61-72 mo.
$440 $75
400
300
32.7% 18.5%
73-84 mo. 49-60 mo.
200
0
New Used Q2 2022
Average Loan Term in Months, 2021 vs. 2022, Q2
72
36.5%
61-72 mo.
■ Q2 2021 ■ Q2 2022
70
69.5 69.5 Q2 2022 34.4% 17.1%
73-84 mo. 49-60 mo.
68.0
68 Q2 2021
66.1
66 1.7% 10.3%
85+ mo. 1-48 mo.
64
62
60
New Used
Source for all charts on this page: Experian Automotive. For more information, visit experian.com/automotive.
10%
8.59% 8.62%
4.17% 4.33%
4
0
Q2 2021 Q2 2022
0.3% 0.2%
Deep Subprime Subprime Deep Subprime Subprime
6.8% 5.2%
15.0% 13.3%
29.5% Nonprime
29.9% Nonprime
Super Prime Super Prime
48.4% 51.4%
Prime Prime
2021 2022
Source for all charts on this page: Experian Automotive. For more information, visit experian.com/automotive.