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Neighborhood New Car Dealerships Continue to Drive NJ’s Economy

Following more than two years of challenges like supply chain disruptions, manufacturing slowdowns and the resulting inventory shortages, fear of an impending recession, flagging consumer confidence, inflation, rising interest rates and more, the retail automotive industry in New Jersey is slowly bouncing back to its pre-pandemic levels of economic activity.

According to a report released today by the New Jersey Coalition of Automotive Retailers (NJ CAR), sales of new and used cars, parts, and service at New Jersey’s 500+ neighborhood new car and truck dealerships topped $40 billion last year. The report also noted that employment levels are bouncing back to pre-pandemic levels and the retail automotive sector now supports more than 71,000 good-paying local jobs with benefits that can’t be outsourced, shipped overseas, or relocated to the Sunbelt.

“The last few years are unlike anything New Jersey consumers or neighborhood new car and truck dealerships have ever seen,” said Jim Appleton, president of NJ CAR. “The economic challenges we faced over the past couple of years have caused many local businesses to close their doors for good. But neighborhood new car dealerships are resilient and have emerged, once again, as the economic engine on Main Street in just about every town and community across The Garden State.”

The enclosed report, entitled The Economic Impact of Franchised New Vehicle Retailers on the New Jersey Economy, contains hard data on employment, payroll, tax collections, automotive sales and charitable contributions from New Jersey’s franchised automotive retailers. Some of the findings in the 2022 report include:

  • Franchised new car & truck dealerships directly provided or supported more than 71,000 jobs in 2022.
  • Franchised dealerships had total sales of more than $40.1 billion in 2022.
  • Average new vehicle dealership sales were $80.2 million in 2022.
  • Dealership employees earned $4.22 billion in compensation in 2022.
  • The average dealership payroll was $7.5 million in 2022.
  • Dealerships collected or paid more than $2 billion in State and local taxes in 2022.
  • Collectively, New Jersey’s franchised automotive dealerships contributed nearly $21 million to hundreds of charitable causes in 2022.

About The New Jersey Coalition of Automotive Retailers

The New Jersey Coalition of Automotive Retailers (NJ CAR), founded in 1918, is a non-profit organization serving approximately 500 franchised car and truck retailers throughout New Jersey. NJ CAR promotes the principals of commercial honor and integrity in the sale and service of motor vehicles. The Coalition keeps its members informed on a variety of business matters, practices, trends, and legislation. NJ CAR also works to ensure all members are educated to assure regulatory compliance.

To access more business news, visit NJB News Now.

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