Consolidation: Fewer Companies Operate Car Dealerships Every Year

The range of car or truck dealerships in the U.S. remained somewhat steady in 2021, but fewer businesses have them. Which is the conclusion Automotive Information attained in its annual examine of the dealership market.

Motor vehicle dealerships had been as soon as largely regional corporations. But, these days, huge conglomerates routinely work dozens of dealers, stretching throughout various states and offering cars of just about every brand. AutoNation, America’s premier dealership group, owns a lot more than 300 dealerships across 18 states and employs far more than 21,000 persons.

The dealership business is significantly consolidating, with massive dealership groups shopping for out neighborhood functions.

Far more Autos Sold by Less Companies

AN stories that, in 2021, the 10 greatest accounted for 9.3% of all new vehicle income nationwide – up from 8.5% in 2020. 2021’s whole may possibly even be an undercount – it does not account for product sales by some dealerships acquired all through the 12 months.

The 150 greatest bought just about a quarter of all cars and noticed their industry share improve by a lot more than 1% final 12 months.

AN expects consolidation to carry on, noting, “Several dealers who acquired shops in 2021 told Automotive Information far more discounts are in the cards for 2022.”

What it Suggests for You

For car buyers, the news has blended meanings.

On 1 hand, prospective buyers can assume a far more regular working experience from dealership to dealership. Large dealership groups may well have far more consistent guidelines and income tactics. As new auto costs have risen through the very last yr, some dealers have begun incorporating sizeable markups to the charge of new automobiles.

That has automakers pushing back, with Ford, Normal Motors, Subaru, Hyundai, and Nissan all recently warning their dealerships versus shady pricing and leasing techniques.

On the other hand, consolidation could rob customers of the solitary most strong device in their negotiating toolkit: local opposition. When threatened with a significant markup, buyers can generally walk away, self-confident that a further dealership in just a realistic drive can market them the similar car or truck. That grows a lot less and less legitimate just about every calendar year.

Connected Stories:

Next Post

A Carmaker Wants To Make Phones Now, And It Won't Be The Last

Graphic: Nio Burgeoning Chinese electric powered car or truck company Nio has provided us with nonetheless more evidence we stay in a unusual timeline — it is searching into earning its personal smartphones. Pull a reverse Apple, if you will. And although I’m personally not terribly fascinated or curious about […]