cars

New Jersey Auto Retail Industry is a $30.4 Billion a Year Business in New Jersey

Generates $4.4 billion in employee compensation, state and local taxes

New Jersey’s retail automotive industry is a major economic 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 issued by the New Jersey Coalition of Automotive Retailers (NJ CAR), which chronicled the contributions the industry made in 2013.  The report was compiled by Auto Outlook, Inc., an independent automotive market analysis firm. The report offers data on employment, payroll, tax collections and industry sales in New Jersey.

The franchised automotive retail industry has been driving both the national and New Jersey economic recovery for the past four years.  New Jersey lost approximately 20% of its dealers and thousands of good New Jersey jobs during the 2007-2008 recession.  Now, the franchised retail automotive industry is poised to sell more than 500,000 vehicles to New Jersey consumers in 2014 for the first time in seven years.

“The franchise system of independent new car dealerships promotes aggressive price competition, ensures convenient access to warranty and safety recall service and advances the public interest in highway safety,” said Jim Appleton, President of NJ CAR. “This $30.4 billion a year business also is a major factor driving job creation and public revenue growth in the State of New Jersey.”

Appleton noted that an aging vehicle fleet, approaching an average of nearly 11 years, coupled with growing consumer confidence, job growth and greater access to credit are expected to lead to an increase in vehicle sales in 2014.

Some of the primary findings in the 2014 report include:

  • In 2013 franchised new vehicle dealerships in New Jersey generated more than 53,000 jobs.
  • New Jersey residents earned nearly $2.92 billion as a result of their employment at automotive dealerships in 2013, an increase of 6.1% from 2012.
  • The average dealership payroll was $4.310 million in 2013, up from $4.075 million in 2012.
  • Dealerships collected or paid more than $1.49 billion in State and local taxes in 2013, up 4.3% compared to 2012.
  • Automobile dealerships spent $365 million on advertising during 2013.
  • Franchised new vehicle dealerships in New Jersey had total sales of more than $30.4 billion in 2013, a 4.6% increase from 2012.
  • Average dealership sales were $59.1 million in 2013, up from $56.5 million in 2012.

·       Collectively, automobile dealerships contributed nearly $13.3 million to hundreds of charitable causes in 2013.