How many independent car dealers are there in the US?
Independent car dealerships play a vital role in the automotive industry, offering a wide range of vehicles and personalized services to customers across the United States. But just how many independent car dealers operate in the country? Let’s dive into the numbers and explore the significance of these businesses in the automotive market.
The Scale of Independent Car Dealerships in the US
As of recent estimates, there are approximately 40,000 independent car dealerships in the United States. These dealerships are distinct from franchise dealerships, which are tied to specific manufacturers like Ford, Toyota, or Chevrolet. Independent dealers often sell used vehicles and provide a more flexible, customer-focused approach to car buying.
Why Independent Dealerships Matter
Independent car dealerships are a cornerstone of the automotive industry for several reasons:
- Variety of Vehicles: Unlike franchise dealerships, independent dealers are not limited to a single brand. This allows them to offer a diverse inventory of vehicles, catering to a wide range of customer preferences and budgets.
- Community Impact: Many independent dealerships are family-owned businesses that contribute to local economies by creating jobs and supporting community initiatives.
- Customer-Centric Approach: Independent dealers often prioritize building long-term relationships with customers, offering personalized service and flexible financing options.
Challenges Facing Independent Dealers
Despite their importance, independent car dealerships face several challenges in today’s market:
- Competition: They compete not only with franchise dealerships but also with online car-buying platforms that are gaining popularity.
- Regulatory Compliance: Independent dealers must navigate complex regulations related to vehicle sales, financing, and emissions standards.
- Market Trends: The shift toward electric vehicles (EVs) and changing consumer preferences require independent dealers to adapt their inventory and services.
The Future of Independent Car Dealerships
While the automotive industry continues to evolve, independent car dealerships remain a vital part of the landscape. By embracing technology, diversifying their offerings, and maintaining their customer-first approach, these businesses can continue to thrive in a competitive market.
Whether you’re looking for a reliable used car or a dealership that values your needs, independent car dealers are here to serve you. Their adaptability and commitment to customer satisfaction ensure they will remain a key player in the automotive industry for years to come.
Frequently Asked Questions
How many primary dealers are there in the US?
As of June 30, 2022, the New York Fed identifies the following 24 primary dealers: ASL Capital Markets Inc. Bank of Montreal, Chicago Branch. Bank of Nova Scotia, New York Agency.
How many independent dealers are there in the US?
40,000 independent used car dealerships and 18,251 new car dealerships in the United States.
Are car dealerships independently owned?
Most dealerships are independently or family-owned franchises of an automotive manufacturer, such as Ford Motor Company or General Motors. In addition to retail services, dealerships provide maintenance services, repair services, and financing.
What percentage of car sales are private?
While roughly 45% of used vehicle sales are private party—neighbor to neighbor deals—the growing majority are retail sales closed at dealerships.
How much do private car dealers make?
How Much Do Car Dealership Owner Jobs Pay per Year? $93,500 is the 25th percentile. Salaries below this are outliers. $129,500 is the 75th percentile.
How many privately owned cars are there in the US?
In 2022, there were 283,400,986 registered vehicles in the United States — 278,870,463 private and commercial vehicles, and 4,530,523 publicly owned vehicles. According to the 2021 U.S. Census Bureau, 91.7% of U.S. households had at least one automobile, and over 21% own three or more vehicles.
How much do independent car dealers make?
Do you get a good deal as a Car Dealership Owner ?
| State | Annual Salary | Hourly Wage |
|---|---|---|
| California | $111,413 | $53.56 |
| Minnesota | $110,567 | $53.16 |
| Rhode Island | $110,555 | $53.15 |
| New Hampshire | $109,788 | $52.78 |
How many Americans own their own car?
Most U.S. households have a car available
Most U.S. households (92%) have at least one vehicle available for personal use, according to ACS estimates from 2023. Nationally, 8% of households don't have a vehicle, a third have one car available and 36% have two cars. Another 22% of households have three or more vehicles.
How many independent auto dealers are there in the US?
40,000 independent used car dealerships and 18,251 new car dealerships in the United States.
Who owns the most private cars in the world?
The car collection of the Sultan of Brunei is the largest private car collection in the world, consisting of approximately 7,000 cars, which have an estimated combined value over US$5 billion.
