According to research firm Urban Science, a “normal” year for the amount of running car dealerships in the U.S. is losing two percent of all dealers. I don’t understand how that’s normal, especially in a country obsessed with growth, but I’ll take Urban Science’s word.
But 2011 was anything BUT normal. Last year, the number of dealerships jumped from 17,659 to 17,767, a ridiculous, off-the-charts 0.6% increase. Fiat contributed the most to the increase, with 135 new car emporiums. Chrysler/Dodge/Jeep added 50 of their own. Sales per dealership increased too, rising to 719 new cars sold off the lot. If this trend continues, 2012 will be the best year ever for auto dealerships.
Franchises, however, suffered. (Dealers typically represent more than two brands, with franchises limited to the single brand). The total number of franchises dropped from 30,098 in 2010 to 29,380 in 2011. Most of this 2.4% decline is attributed to the Ford Mercury brand phase out, though it’s hard to believe that 2% of all car franchises were Ford Mercury sellers.
The bright lights of the new showrooms will help to draw in new car buyers, increasing foot traffic and the potential to be annoyed by an adjacent consumer. So if you hate rubbing elbows with shoppers and listening to the ridiculous things that they say, use CarWoo! to buy your new car. Click here.
