Report: Dealers Expanded Fixed Ops in 2016

Order Reprints

April 17, 2017--New-car dealerships wrote 259 million customer repair orders in 2016, up 6.5 percent from the previous year, according to NADA's annual NADA Data 2016 report, the annual financial profile of new-car dealerships. These orders included service, warranty and recalls.

As a percentage of a dealership's total gross, profits fell in the new- and used-vehicle departments, but rose in service and parts, an annual study by the National Automobile Dealers Association shows.

“More and more consumers are choosing new-car dealerships for their service needs,” said Patrick Manzi, NADA senior economist. “Express service, such oil changes, and non-warranty repair orders at dealerships, on average, increased by 10.9 percent and 4.2 percent, respectively, in 2016. This increase demonstrates that consumers value the expertise of the highly-trained and factory-certified technicians employed at new-vehicle dealerships.” 

Other highlights from NADA Data 2016 include:

  • Employment, wages and payroll at U.S. new-car dealerships all continued to rise in 2016. In 2016, new-car dealerships directly employed a record 1,131,900 workers, a 2.4% increase from the previous year.
  • The total number of new-car dealerships was 16,708, up 163 from 2015.
  • A record 17,465,020 new cars and light trucks were purchased or leased in 2016.
  • The average selling price of a new vehicle was $34,449, up 3% from 2015.
  • The average selling price of a used vehicle was $19,866, up 2.5% from 2015.
  • New vehicles sold per dealership on average was 1,045.
  • Number of customers purchasing a new- or used-vehicle service contract was 43.7%, up 1% from 2015.
  • New-car dealerships sold 14,968,206 million used vehicles, which accounted for 37% of all used vehicles retailed.


 

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