New Jersey Auto Retail Industry is a $32.13 Billion a Year Business

On Jun 1, 2015

New Jersey’s retail automotive industry is a major force in the State’s economy, generating tens of thousands of jobs, and billions of dollars in employment earnings, state and local taxes. This, according to a report commissioned by the New Jersey Coalition of Automotive Retailers (NJ CAR) and compiled by Auto Outlook, Inc., an independent automotive market analysis firm. The report, entitled The Economic Impact of Franchised New Vehicle Retailers on the New Jersey Economy, offers hard data on employment, payroll, tax collections and automotive sales in New Jersey.

The franchised automotive retail industry has been driving the national and New Jersey economic recoveries since 2009.  At the time, new light vehicle sales fell below 400,000 in New Jersey- a 20-year low. Now, six years later, the franchised retail automotive industry is poised to sell more than 500,000 vehicles to New Jersey consumers in 2015 for the first time in nearly a decade.

“More and more consumers are embracing the many technological, safety and fuel-efficiency advantages offered in vehicles made today,” said Jim Appleton, president of NJ CAR.  “The network of 510 franchised new car dealerships across New Jersey not only drives the state’s economy, it benefits consumers by creating aggressive price competition and offering convenient access to warranty and safety recall service.”

A copy of the report is attached to this press release. Some of the primary findings in the 2015 report include:

• In 2014 franchised new vehicle dealerships in New Jersey generated nearly 55,000 jobs.
• New Jersey residents earned more than $3 billion as a result of their employment at automotive dealerships in 2014, an increase of 6 percent from 2013.
• The average dealership payroll was $4.625 million in 2014, up from $4.310 million in 2013.
• Dealerships collected or paid more than $1.57 billion in State and local taxes in 2014, up 5.5 percent compared to 2013.
• Automobile dealerships spent $395 million on advertising during 2014
• Franchised new vehicle dealerships in New Jersey had total sales of more than $32.13 billion in 2014, a 5.6 percent increase from 2013.
• Average dealership sales were $63 million in 2014, up from $59.1 million in 2013.
• Collectively, automobile dealerships contributed nearly $13.2 million to hundreds of charitable causes in 2014.

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