Neighborhood New Car Dealerships Continue Driving New Jersey’s Economy

Neighborhood New Car Dealerships Continue
Driving New Jersey’s Economy

 

Generated $43 Billion In Sales, $5 Billion In Compensation,
& $2.1 Billion In State & Local Taxes In 2023

 

 

June 19, 2024 — TRENTON, NJ: —   After a few years of pandemic-related disruption, supply chain disruptions, and reduced inventory, the auto retail sector began its return to normal in 2023. And despite new challenges related to inflation and higher interest rates, the auto retail sector had a positive year, posting increased sales volumes (up nearly 10%) and creating another 1,500 jobs in 2023.

 

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 reached nearly $43 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 72,500 good-paying local jobs with benefits that can’t be outsourced, shipped overseas, or relocated to the Sunbelt.

 

“It’s been four years, but New Jersey consumers and the neighborhood new car and truck dealerships that serve them continue recovering from the unprecedented pandemic-related disruptions,” said Jim Appleton, President of NJ CAR. “New Jersey’s franchised new car dealerships continue to be the economic engine that drives the New Jersey economy as they work to protect consumer choice and vehicle affordability.”

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 2023 report include:

 

  • Franchised new car & truck dealerships directly provided or supported more than 72,750 jobs in 2023.
  • Franchised dealerships had total sales of nearly $43 billion in 2023.
  • Average new vehicle dealership sales were $85.7 million in 2023.
  • Dealership employees earned $5 billion in compensation in 2023.
  • The average dealership payroll was $7.3 million in 2023.
  • Dealerships collected or paid more than $2.1 billion in State and local taxes in 2023.
  • Collectively, New Jersey’s franchised automotive dealerships contributed more than $26 million to hundreds of charitable causes in 2023.

 

 

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.

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