The National Automobile Dealers Association reported U.S. franchised dealerships generated more than US$1.3 trillion in total sales in 2025, up from about US$1.2 trillion a year earlier, as the retail auto market continued to recover.
The group’s annual financial profile shows 16,990 dealerships sold 16.2 million light-duty vehicles, compared with roughly 15.8 million in 2024, as inventory levels improved.
“New light-vehicle sales reached their highest level since 2019 as inventories normalized,” said chief economist Patrick Manzi in the foreword.
Average dealership revenue rose 4.5% year-over-year, with gains across new, used and service operations.
“In 2025 the average franchised dealership saw its revenue increase by 4.5% year-over-year,” Manzi added. “Revenue was up across the store with growth in the new, used and fixed operations departments.”
Service and parts operations continued to expand. Dealerships generated US$164.6 billion in that segment, up from about US$156 billion in 2024, while repair orders rose to more than 276 million from just over 270 million.
“Dealerships wrote more than 276 million repair orders, with service and parts sales exceeding $164 billion,” Manzi said in the foreword.
New vehicles accounted for 54.9% of total revenue, followed by used vehicles at 31.8% and service and parts at 13.3%. The average new vehicle sold for US$48,205, continuing a steady rise in prices.
Electric vehicle sales showed volatility tied to policy changes. Market share reached 11.8% in September before dropping to 5.9% in October after a federal tax credit expired.
“The federal tax credit for electric vehicles expired at the end of September 2025, which caused consumers to flock to dealer lots in September to take advantage of the tax credit,” Manzi said in the foreword.
Inventory levels ended the year at 2.6 million units, down 7.6% from 2024.
“Inventory should hover around this level until mid-year 2026, before building in Q3 and selling off in Q4,” Manzi said in the foreword.
Light-duty trucks continued to dominate the market, accounting for 83.0% of total sales.
Employment across franchised dealerships totalled 1.12 million workers, broadly in line with the previous year.
The report shows a dealership sector that has regained sales momentum, supported by improved supply, higher prices and steady growth in service operations.
