Pub. 2 Issue 2

LOCAL COMPETITION SAFETY JOBS TAX REVENUE & SERVICE LOCAL ECONOMIC BENEFITS Dealers generate good local jobs and significant tax revenues, delivering a huge impact on their local economies. ADDEDVALUE Dealers simplify a complex process and personalize the car buying experience. Dealers fuel local economic activity, creating jobs and economic opportunity for local residents. • Dealers employ more than 1 million people across the country in locally owned and operated small businesses. • Dealerships provide good-paying jobs with benefits, and opportunities for personal advancement and professional development. Franchised new-car dealers pay billions in state and local taxes. • New-car sales account for 15% of all retail sales in the United States. • New-car sales generate 15% of all U.S. sales tax revenue. Dealer revenues stay in local communities, whereas profits generated by factory- owned dealerships flow up a vertical ladder to out-of-state shareholders. Local dealers hire local people. • When the going gets tough, a multinational giant can close a local retail outlet and move on. Local dealers will be there for consumers in good times and bad. • Dealership jobs cannot be outsourced overseas. A new-car dealer serves a consumer for the entire ownership experience. • Dealers provide test-drives of multiple vehicle models and competing brands, sales, financing, trade-ins, registration and tags — as well as repair, warranty and recall service work. Consumers want a convenient purchasing process. • Dealers offer a wide variety of financing options, which are frequently more affordable than bank loans. • In addition to conducting online research, most consumers want to see and test-drive a car before they buy it. • More than 60% of all new-car purchases include a trade-in to cover a portion of the down payment, and dealers provide a hassle-free market for trade-ins. • Dealers take on the complex system of titling, registration and reams of regulatory paperwork, so consumers can simply sign and drive away. Consumers value personal service and local relationships. • While making a purchase that’s second largest to a house, consumers want to interact in person, not with a website, a faceless 1-800 number, or a manufacturer or distributor located hundreds or thousands of miles away. 3. 4. CURRENT AUTO DEALER FRANCHISE LAWS PRESENT THE BEST OPPORTUNITY TO ENSURE LOCAL OWNERSHIP AND OPERATION OF DEALERSHIPS, WHICH BENEFITS CONSUMERS AND LOCAL COMMUNITIES. FRANCHISED AUTO DEALERS Visit nada.org/GetTheFacts nada.org/GetTheFacts | CONSUMER BENEFITS OF YOUR LOCAL FRANCHISED AUTO DEALER