Pub. 3 2021-2022 Issue 2

23 CALIFORNIA NEW CAR DEALERS ASSOCIATION 1517 L Street l Sacramento, CA 95814 l Phone 916.441.2599 l cncda.org ANNUAL CONTRIBUTIONS OF CALIFORNIA NEW CAR DEALERS Total sales $115.40 billion Average sales per dealership $82.00 million Percent of total statewide sales tax collected 13% Number of new car dealerships 1,407 DEALERS PROVIDE JOBS IN CALIFORNIA Total payroll for all new car dealerships $9.10 billion Total number of new car dealership employees 135,072 DEALERS PLAY AN IMPORTANT ROLE IN THE STATE AS LOCAL BUSINESS AND CIVIC LEADERS Total taxes collected or paid $9.80 billion Total spent for products and services from other California businesses $2.65 billion Donations to charitable and civic organizations $49.95 million 2020 VEHICLE SALES New vehicles sold* 1,639,166 Used retail vehicles sold 1,407,000 Total new and used vehicles sold 3,046,155 * New vehicles sold based on California registrations. This report provides an in-depth analysis of the economic impact of California new car and truck dealers on the State’s economy. It includes estimates of employment, personal income, and tax collections generated by California new car dealers. Also included is a review of dealership financial statistics and operations. This report was prepared by Auto Outlook, Inc., an independent automotive market analysis firm, and was sponsored by the California New Car Dealers Association. The report was compiled based on data collected from new car dealerships throughout the state, as well as government sources. ECONOMIC IMPACT REPORT 2021 New vehicle unit sales 20% Total dollar sales 10% Total full time employment 6% Total payroll 2% Total charitable contributions 3% 2019 to 2020: The Contributions of California’s Franchised New Car Dealers CALIFORNIA’S NEW CAR DEALERS ARE DRIVING THE CALIFORNIA ECONOMY AVERAGE DEALERSHIP INDUSTRY TOTAL New vehicle department $48.70 million $68.52 billion Used vehicle department $19.00 million $26.73 billion Service department $4.48 million $6.30 billion Parts and accessories department $6.05 million $8.51 billion Finance & insurance department $3.06 million $4.31 billion Other departments $0.71 million $991.94 million Total dealership sales $82.00 million $115.40 billion VEHICLE SALES (SUMMARY FOR AVERAGE DEALERSHIP) UNITS SOLD $ PER UNIT TOTAL New vehicles 1,165 $41,803 $48.70 million Used vehicles 1,000 $19,000 $19.00 million 2020 DEALERSHIP SALES CHARITABLE GIVING In 2020, California new car dealers made over $49.95 million in donations to charitable and civic organizations, including: ADVERTISING In 2020, California new car dealers collectively spent over $1.11 billion on advertising. TAXES AVERAGE DEALERSHIP INDUSTRY TOTAL State sales tax $4.76 million $6.69 billion Federal payroll taxes $1.59 million $2.24 billion State payroll taxes $368,000 $517.78 million Real estate taxes $153,000 $215.27 million Other state and local taxes $102,000 $143.51 million Total taxes collected or paid $6.97 million $9.80 billion Average sales tax and VLF generated on the sale of a new vehicle in Los Angeles: $5,079.81 Digital TV Radio Mail Other Paper 4% 7% 6% 23% 59% 11% 9% 12% 8% 4% 56% CORONAVIRUS IMPACTS AVERAGE DEALERSHIP INDUSTRY TOTAL Additional expenses incurred to comply with regulations related to COVD-19 $59,300 $83.44 million Added costs incurred to allow for online sales and remote delivery of vehicles $22,100 $31.09 million Total vehicle sales revenue lost due to COVID-19 $3.85 million $5.42 billion Total parts and service revenue lost due to COVID-19 $725,000 $1.02 billion Number of workdays lost by employees due to COVID-19 related health issues 260 365,820 AVERAGE DEALERSHIP INDUSTRY TOTAL Full time employees 91 128,037 Part time employees 5 7,035 Total employees 96 135,072 Annual payroll $6.47 million $9.10 billion Percentage of dealerships that provide access to health insurance for employees 97% 97% Workers’ compensation premiums per employee $1,495 $1,495 Workers’ compensation premiums paid $136,045 $191.41 million EMPLOYMENT & PAYROLL Total spent for products and services from other California businesses AVERAGE DEALERSHIP $1.88 million INDUSTRY TOTAL $2.65 billion Our Healthcare Heroes