How Many Cars Does a Car Dealership Sell per Month
The number of cars a dealership sells per month varies widely based on size, location, brand, and market conditions. While small lots may sell 10–30 vehicles, large franchises can move 200+ monthly, with national averages hovering around 50–100 units.
In This Article
- 1 Key Takeaways
- 2 📑 Table of Contents
- 3 How Many Cars Does a Car Dealership Sell per Month?
- 4 Understanding the Average: What’s Normal for a Car Dealership?
- 5 Factors That Influence Monthly Car Sales
- 6 The Role of Technology and Online Sales
- 7 Challenges That Can Limit Monthly Sales
- 8 Tips for Dealerships to Increase Monthly Sales
- 9 Conclusion
- 10 Frequently Asked Questions
- 10.1 What is the average number of cars sold by a dealership per month?
- 10.2 Do luxury car dealerships sell fewer cars?
- 10.3 How does location affect car sales?
- 10.4 Can a small dealership sell as many cars as a large one?
- 10.5 Do online sales increase how many cars a dealership sells?
- 10.6 What time of year do dealerships sell the most cars?
Key Takeaways
- Dealership size matters: Larger dealerships with more inventory and staff typically sell significantly more cars per month than smaller, independent lots.
- Location impacts volume: Urban and high-traffic areas generally see higher sales due to greater population density and visibility.
- Brand reputation plays a role: Franchise dealerships for popular brands like Toyota, Ford, or Honda often outperform lesser-known or luxury brands in monthly volume.
- Seasonality affects sales: Car sales tend to peak in spring and summer, with dips in winter months, especially in colder climates.
- Economic conditions are key: Interest rates, fuel prices, and consumer confidence directly influence how many cars a dealership can sell in a given month.
- Online sales are rising: More customers begin their car-buying journey online, allowing dealerships to sell more efficiently even with fewer in-person visits.
- Average monthly sales range widely: Most dealerships sell between 30 and 150 cars per month, with national averages around 80–100 units.
📑 Table of Contents
How Many Cars Does a Car Dealership Sell per Month?
If you’ve ever driven past a car dealership and wondered just how busy it really is, you’re not alone. Whether you’re a potential buyer, an aspiring dealer, or just curious about the automotive industry, one question keeps popping up: *How many cars does a car dealership actually sell per month?* The answer isn’t as simple as a single number—it depends on a mix of factors including location, size, brand, and even the time of year.
Car dealerships come in all shapes and sizes. You’ve got small independent lots tucked away in quiet neighborhoods, massive multi-brand auto malls with rows of shiny vehicles, and everything in between. Some dealerships specialize in used cars, while others focus on new models from a single manufacturer. Each type operates differently, and their monthly sales reflect that diversity.
So, while one dealership might proudly announce it sold 250 cars last month, another down the street might be thrilled with just 20. The truth is, there’s no one-size-fits-all answer. But by understanding the trends, averages, and influencing factors, we can get a clearer picture of what’s normal—and what’s exceptional—in the world of car sales.
Understanding the Average: What’s Normal for a Car Dealership?
Visual guide about How Many Cars Does a Car Dealership Sell per Month
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When people ask how many cars a dealership sells per month, they’re often looking for a benchmark—a number they can compare against. While exact figures vary, industry reports and dealer associations provide useful estimates.
According to the National Automobile Dealers Association (NADA), the average new car dealership in the United States sells between 80 and 100 vehicles per month. This includes both new and used cars, though the split can vary. Some dealerships focus almost entirely on new models, while others have a stronger used car inventory.
For used car-only lots, the numbers tend to be lower. Independent used car dealers might sell anywhere from 10 to 50 cars per month, depending on their size and reputation. Larger used car superstores, like CarMax or Carvana franchise locations, can sell 100 or more vehicles monthly due to their extensive inventory and national advertising reach.
It’s also important to note that these averages include both retail and fleet sales. Some dealerships sell vehicles to businesses, government agencies, or rental companies in bulk, which can significantly boost monthly numbers. For example, a Ford dealership might sell 30 cars to a local taxi company in a single transaction—counted as 30 units in that month’s total.
Breaking Down the Numbers by Dealership Type
Let’s look at a few real-world examples to put these averages into context.
A small, family-owned dealership in a rural town might have a staff of five and a lot with 40 cars. If they sell 15 vehicles in a month, that’s considered a solid performance. Their sales cycle is longer, and customer traffic is lower, but their overhead is minimal.
In contrast, a large Toyota dealership in a major city like Atlanta or Dallas might have 20 salespeople, a service department, and a showroom with 200+ vehicles. Selling 150 cars in a month is not only possible—it’s expected. These dealerships benefit from high foot traffic, strong brand loyalty, and aggressive marketing campaigns.
Franchise dealerships (those tied to a specific manufacturer) often outperform independents because they receive factory support, training, and advertising funds. They also have access to the latest models and incentives, which helps drive sales.
Regional Differences in Sales Volume
Geography plays a big role in how many cars a dealership sells. Urban areas with dense populations and high vehicle ownership rates naturally support higher sales volumes. For instance, dealerships in Los Angeles, New York, or Chicago often report monthly sales well above the national average.
On the other hand, rural dealerships face challenges like lower population density, longer travel times for customers, and seasonal weather that can slow down sales. A dealership in North Dakota might sell 30 cars in a good month during summer, but only 10 in January when roads are icy and people stay home.
Even within the same state, differences can be stark. A Honda dealership in downtown Miami might sell 120 cars in a month, while a similar dealership in a small Florida town 100 miles away might only sell 40.
Factors That Influence Monthly Car Sales
Visual guide about How Many Cars Does a Car Dealership Sell per Month
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So why do some dealerships sell hundreds of cars while others struggle to hit double digits? The answer lies in a combination of internal and external factors. Let’s explore the most significant ones.
Dealership Size and Inventory
Size matters—especially when it comes to inventory. A dealership with 200 cars on the lot has more options to offer customers, increasing the chances of a sale. More inventory means more variety in price, model, trim, and features, which appeals to a broader audience.
Larger dealerships also tend to have more sales staff. A team of 15 salespeople can handle more customer inquiries, follow up on leads, and close deals faster than a single salesperson working alone. This scalability directly impacts monthly sales volume.
Additionally, bigger dealerships often have better facilities—modern showrooms, comfortable waiting areas, and on-site service centers—that enhance the customer experience and encourage repeat business.
Location and Market Demand
You’ve probably heard the real estate mantra: “Location, location, location.” It applies to car dealerships too. A dealership located on a busy highway with high visibility and easy access will naturally attract more walk-in customers than one tucked away on a side street.
Proximity to residential neighborhoods, shopping centers, and business districts also matters. If a dealership is surrounded by families, commuters, and young professionals—people who need reliable transportation—it’s more likely to see consistent sales.
Market demand is another key factor. In areas where public transportation is limited, car ownership is essential, leading to higher sales. Conversely, in cities with robust transit systems, dealerships may face stiffer competition and lower demand.
Brand and Manufacturer Support
Franchise dealerships benefit from being part of a well-known brand. Toyota, Ford, Honda, and Chevrolet have strong reputations for reliability, which helps drive customer interest. These brands also provide dealerships with marketing support, training programs, and access to exclusive incentives.
For example, during a holiday sales event, a Chevrolet dealership might receive co-op advertising funds to run TV and radio ads, boosting visibility and foot traffic. They might also offer special financing rates or cash rebates that make their vehicles more attractive than competitors’.
Luxury brands like BMW, Mercedes-Benz, and Lexus tend to sell fewer units per month—often 20 to 50—but at much higher profit margins. Their customers are typically less price-sensitive and more focused on prestige, performance, and features.
Economic Conditions and Consumer Confidence
The broader economy has a direct impact on car sales. When unemployment is low, wages are rising, and consumer confidence is high, people are more likely to make big purchases like a new car.
Interest rates also play a role. When auto loan rates are low, financing a vehicle becomes more affordable, encouraging more buyers to take the plunge. Conversely, when rates rise—as they did in 2022 and 2023—some buyers delay their purchases or opt for cheaper models.
Fuel prices can influence sales too. When gas prices spike, demand for fuel-efficient cars, hybrids, and electric vehicles increases. Dealerships that stock these models may see a boost in sales, while those focused on trucks and SUVs might struggle.
Seasonality and Timing
Car sales aren’t evenly distributed throughout the year. There are clear seasonal patterns that affect how many cars a dealership sells per month.
Spring and summer are typically the busiest times. Warmer weather, longer days, and tax refunds make people more willing to shop for cars. Many dealerships run special promotions in March, April, and May to capitalize on this surge.
Fall can also be strong, especially as new model-year vehicles arrive. Dealerships often discount outgoing models to make room for the latest versions, creating a wave of deals that attract bargain hunters.
Winter, particularly January and February, is usually the slowest. Cold weather, holiday spending, and post-holiday fatigue reduce customer traffic. However, some dealerships use this time to focus on service, training, and planning for the upcoming year.
The Role of Technology and Online Sales
Visual guide about How Many Cars Does a Car Dealership Sell per Month
Image source: spyne.ai
The way people buy cars has changed dramatically in the last decade. While many customers still visit dealerships in person, more and more of the car-buying process happens online.
Today, over 80% of car shoppers start their search on the internet. They compare models, read reviews, check prices, and even get pre-approved for financing—all from their phones or laptops. This shift has allowed dealerships to reach more customers without relying solely on foot traffic.
Digital Showrooms and Virtual Tours
Many dealerships now offer virtual tours of their inventory. Customers can browse photos, watch videos, and even take 360-degree views of vehicles from home. Some platforms allow buyers to schedule test drives online or complete paperwork digitally.
This convenience speeds up the sales process and reduces the time it takes to close a deal. A customer who finds the perfect car online might visit the dealership just once—to sign papers and drive off—saving time for both parties.
Online Marketplaces and Third-Party Platforms
Websites like Cars.com, Autotrader, and CarGurus connect buyers with dealerships across the country. When a customer searches for a specific model, these platforms show available vehicles from nearby dealers, complete with pricing, photos, and contact information.
Dealerships that list their inventory on these sites can attract out-of-town buyers and increase their sales volume. Some even sell cars directly to customers in other states, shipping the vehicle after the deal is finalized.
The Rise of Direct-to-Consumer Sales
Companies like Tesla and Rivian have disrupted the traditional dealership model by selling directly to consumers online. While most manufacturers still rely on franchised dealers, the trend toward digital sales is growing.
Even traditional dealerships are adapting. Many now offer “click-to-buy” options, where customers can configure a car, apply for financing, and schedule delivery—all without stepping foot in a showroom.
This shift doesn’t necessarily increase the number of cars sold, but it makes the process more efficient. Dealerships can handle more transactions with fewer staff, potentially boosting monthly sales without expanding their physical footprint.
Challenges That Can Limit Monthly Sales
Despite all the factors that can boost sales, dealerships also face obstacles that can slow things down.
Inventory Shortages
The global semiconductor shortage that began in 2020 had a major impact on car production. With fewer new vehicles being manufactured, dealerships struggled to keep their lots stocked.
When inventory is low, customers have fewer options, and dealerships can’t meet demand. Some buyers walk away frustrated, while others wait months for their preferred model to arrive.
Even as supply chains improve, inventory challenges persist. Dealerships must carefully manage their orders to avoid overstocking slow-moving models or understocking popular ones.
Competition from Private Sellers and Online Platforms
Not all car sales go through dealerships. Many people buy and sell vehicles privately through platforms like Craigslist, Facebook Marketplace, or OfferUp.
These transactions are often faster and cheaper, since there’s no dealer markup or paperwork fees. For buyers on a tight budget, private sales can be an attractive alternative.
Additionally, online car-buying services like Carvana, Vroom, and Shift allow customers to purchase vehicles entirely online, with home delivery and return policies. These companies compete directly with traditional dealerships, especially in the used car market.
Changing Consumer Preferences
Today’s car buyers are different from those of 20 years ago. Many are more environmentally conscious, tech-savvy, and price-sensitive.
Electric vehicles (EVs) are gaining popularity, but not all dealerships are equipped to sell or service them. Those without EV training, charging stations, or inventory may lose customers to competitors who are better prepared.
Similarly, younger buyers often prioritize connectivity, safety features, and fuel efficiency over raw power or luxury. Dealerships that don’t adapt their inventory and marketing to these preferences may see declining sales.
Tips for Dealerships to Increase Monthly Sales
If you’re running a dealership—or thinking about starting one—here are some practical tips to boost your monthly sales numbers.
Optimize Your Online Presence
Make sure your website is mobile-friendly, fast-loading, and easy to navigate. Include high-quality photos, detailed descriptions, and pricing for every vehicle.
List your inventory on major automotive websites and respond quickly to online inquiries. A fast response time can mean the difference between a sale and a lost customer.
Train Your Sales Team
Your salespeople are your front line. Invest in ongoing training to help them understand new models, financing options, and customer service best practices.
Encourage a consultative approach—helping customers find the right car, not just pushing the most expensive one. Happy customers are more likely to return and refer others.
Run Targeted Promotions
Use data to identify slow-moving inventory and create special offers to move those units. Offer discounts, free maintenance, or extended warranties to sweeten the deal.
Time your promotions around holidays, end-of-month quotas, or new model arrivals to maximize impact.
Focus on Customer Retention
It’s cheaper to keep a customer than to find a new one. Follow up after a sale, offer service specials, and stay in touch through email or text.
Loyal customers often buy again and recommend your dealership to friends and family.
Conclusion
So, how many cars does a car dealership sell per month? The answer depends on a wide range of factors—from size and location to brand and market conditions. While the national average hovers around 80 to 100 vehicles, individual dealerships can sell anywhere from 10 to 300 or more.
Small lots in rural areas may celebrate 20 sales as a win, while urban franchises consider 150 the norm. Seasonal trends, economic shifts, and technological changes all play a role in shaping these numbers.
What’s clear is that the automotive retail landscape is evolving. Dealerships that adapt—by embracing online tools, understanding customer needs, and staying agile in a changing market—are the ones most likely to thrive.
Whether you’re a buyer, seller, or industry observer, understanding these dynamics helps put monthly sales figures into perspective. After all, behind every number is a team of people working to match the right car with the right customer.
Frequently Asked Questions
What is the average number of cars sold by a dealership per month?
The average car dealership in the U.S. sells between 80 and 100 vehicles per month, including both new and used cars. This number can vary widely based on size, location, and brand.
Do luxury car dealerships sell fewer cars?
Yes, luxury dealerships typically sell fewer units—often 20 to 50 per month—but at higher profit margins due to premium pricing and affluent customers.
How does location affect car sales?
Dealerships in urban, high-traffic areas with strong population density tend to sell more cars than those in rural or less accessible locations.
Can a small dealership sell as many cars as a large one?
It’s rare. Larger dealerships have more inventory, staff, and marketing resources, giving them a significant advantage in monthly sales volume.
Do online sales increase how many cars a dealership sells?
Yes, online tools help dealerships reach more customers, streamline the buying process, and close deals faster, potentially increasing monthly sales.
What time of year do dealerships sell the most cars?
Spring and summer are peak seasons, with many dealerships seeing the highest sales in March, April, May, and June due to better weather and consumer spending.
