Franchised New Car Dealers Create Jobs and Pump $27.1 Billion into Economy

NEW YORK, Oct. 7, 2013 /PRNewswire/ -- Franchised new car dealers in the New York metro area sold 429,000 new and used cars – injecting $27.1 billion into the economy while helping to sustain a workforce of nearly 58,000.  Dealers generated $1.83 billion in tax revenue to state and local governments last year, according to a new study of automotive retailers released today by the Greater New York Automobile Dealers Association (GNYADA). 

(Photo:  http://photos.prnewswire.com/prnh/20131007/NY93240-INFO )

"Our area's auto dealers are an enormously important part of the local and state economy because of the revenue they generate and the jobs they produce," said Mark Schienberg, president of GNYADA.  "Directly and indirectly, greater New York's franchised auto dealers provide more than 58,000 jobs to area residents, and are a key part of the region's economic growth and development."

"An average dealer employs 83 people of which more than a third are in high paying jobs in the service department. Dealers also purchase more advertising than any other sector providing a lifeline to many local broadcast, print and online media companies.  Last year, area dealership advertising totaled $388 million," said Schienberg.

Here are some of the key economic impact findings:

• $27.1 billion in vehicle sales (up 12.4% from last study in 2010)
• 429,000 vehicles sold (up 10%)
• More than 57,000 jobs, directly and indirectly (up 3.1%)
  • 58% higher salaries than average NYS retail employees
  • Auto retail jobs account for 10% of all retail jobs in NYS
• $1.83 billion in tax revenue for state and local government (up 7%)
• $388 million in dealership advertising spending  
• $655 million in capital improvements to dealership facilities (three-year period)
• Average dealership employs 83 people.
• Average dealership payroll expenses exceeded $5.1 million
• Average dealership repaired and serviced over 20,500 vehicles in 2012

The report provides an in-depth analysis of the economic impact of New York metro area new car and truck retailers on the New York economy.  It includes a review of direct and indirect employment, personal income, tax collections generated by area automobile dealers, and a review of dealership financial statistics and operations.

Headquartered in Whitestone, NY, the Greater New York Automobile Dealers Association (GNYADA) represents nearly 600 franchised automobile dealerships in the metro area of New York.  GNYADA owns and operates the Center for Automotive Education & Training, and the New York International Automobile Show.  The Association opened its doors in 1910 and has continued to serve the needs of the industry and the car-buying public ever since.

SOURCE Greater New York Automobile Dealers Association