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NJ’s Franchised Auto Retailers Drive the State’s Economy

New Jersey’s retail automotive industry is the economic engine on Main Street in cities and towns across New Jersey. According to a report issued by the New Jersey Coalition of Automotive Retailers (NJ CAR), the Garden State’s network of 526 franchised automotive retailers represent a $35 billion per year industry and directly employ or support more than 73,000 good-paying, local jobs that can’t be outsourced. These community-focused businesses also benefit the New Jersey economy by generating billions of dollars in employment earnings and State and local taxes.

“New Jersey’s franchised auto retailers bring significant economic contributions to every city and town in which they operate,” said Jim Appleton, President of NJ CAR. “They offer consumers aggressive price competition and convenient access to free warranty and safety recall service. They are dedicated to offering best-in-class service to EVERY customer that walks into their showrooms and are adopting new technologies to engage with their customers where they want, when they want and how they want.”

The 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 2018 report include:

  • Franchised new car and truck dealerships generated more than 73,000 jobs in 2017, up from 67,000 jobs in 2016.
  • Dealership employees earned nearly $3.8 billion in 2017, up from nearly $3.6 billion in 2016.
  • The average dealership payroll was $5.33 million in 2017, up from $5.19 million in 2016.
  • Dealerships collected or paid more than $1.71 billion in State and local taxes in 2017, up from $1.68 billion in 2016.
  • Franchised automotive dealerships spent more than $420 million on advertising during 2017.
  • Franchised dealerships had total sales of more than $35 billion in 2017, up from $34.3 billion in 2016.
  • Average new vehicle dealership sales were $67.4 million in 2017, up from $67.2 million in 2016.

Collectively, New Jersey’s franchised automotive dealerships contributed nearly $15.2 million to hundreds of charitable causes in 2017.

To access more business news, visit NJB News Now.

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