Auto and Motor Vehicle Wholesalers
Industry Profile Report
Dive Deep into the industry with a 25+ page industry report (pdf format) including the following chapters
Industry Overview Current Conditions, Industry Structure, How Firms Operate, Industry Trends, Credit Underwriting & Risks, and Industry Forecast.
Call Preparation Call Prep Questions, Industry Terms, and Weblinks.
Financial Insights Working Capital, Capital Financing, Business Valuation, and Financial Benchmarks.
Industry Profile Excerpts
Industry Overview
The 4,600 auto and motor vehicle wholesalers in the US sell or arrange the purchase or sale of new and used passenger cars, trucks, trailers, and other motor vehicles to commercial dealers. They buy from dealerships and auctions and sell to other dealerships and through auctions. Firms may offer financing, reconditioning, transportation, storage, inspection, and other services.
Seasonal Demand Affects Pricing
Demand for used vehicles peaks during the summer months, with volume often twice as high as in the winter, according to the National Auto Auction Association.
Volatile Pricing, Economic Vulnerability
Used vehicle wholesale pricing can be volatile and decline during periods of economic weakness.
Industry size & Structure
The average auto and vehicle wholesale or auction company employs fewer than 10 workers and generates about $139 million annually.
- The auto and vehicle wholesaling and auction industry includes about 4,600 companies that employ 138,600 workers and generate $640 billion annually.
- The industry is concentrated; the top 50 companies account for almost 90% of industry revenue.
- Large vehicle auction providers include Manheim (Cox), ADESA, and ACV. R. Hollenshead Auto Sales and Wholesale, Inc., are the largest independent vehicle wholesalers.
- Before the pandemic, auto auctions helped sell about 12 million cars annually.
- Automobile wholesalers account for 54% of sales, while heavy truck, trailer and tractor wholesalers account for 8% and light truck and van wholesalers account for 18%.
Industry Forecast
Auto and Motor Vehicle Wholesalers Industry Growth
Recent Developments
Jan 20, 2025 - Sales Increase for Auto Wholesalers
- Sales for motor vehicles and parts wholesalers increased 2.3% in November 2024 year over year but fell 7.3% from the previous month, according to data from the US Census Bureau. Inventories and the inventory/sales ratio for motor vehicles and parts wholesalers rose 4.1% and 1.7% in November, respectively, year over year, per the Census Bureau. Producer inflation for motor vehicle and parts wholesalers grew 4.7% in November 2024 compared to a year ago, according to the Bureau of Labor Statistics (BLS). Employment by motor vehicle wholesalers was flat in October 2024 compared to a year ago. Average wages for nonsupervisory employees in the industry grew 3.7% in October 2024, reaching $33.09 per hour, per the BLS.
- Consumer confidence levels declined in December 2024, falling by 8.1 points from the previous month, according to The Conference Board. The Consumer Confidence Index was 104.7 in December 2024 from 112.8 in November 2024. Dana Peterson, chief economist at The Conference Board, noted that those remaining most confident on a six-month moving average basis confidence were those aged under 35 and those in the income category of over $100,000. Per Peterson, “The recent rebound in consumer confidence was not sustained in December as the Index dropped back to the middle of the range that has prevailed over the past two years.” Purchasing plans for homes decreased while plans to buy new cars and big-ticket items rose in December 2024 on a six-month average basis.
- According to a report in Nikkei Asia, the election of Donald Trump as president could raise US auto production costs by $40 billion due to his plans for 10-20% tariffs on all imports and additional tariffs of up to 60% on Chinese goods. The increased tariffs could have a major impact on the auto industry, which has sales of 15 million vehicles per year. Many of the vehicles are imported from Mexico, Canada, and Japan. The tariffs would apply to finished cars and auto parts. Mexico accounted for over 40% of auto parts imported into the US in the first half of 2024. According to calculations by consulting firm AlixPartners, higher tariffs on imported parts could increase the manufacturing cost per US-made car by up to $4,000. It is expected that the tariffs would lead automakers to increase production in the US. While research nonprofit organization Tax Foundation estimates the tariffs could increase US revenue by $3.8 trillion in the long term, it is anticipated that companies will cover the higher costs by raising prices, per the report.
- Car repossessions increased 23% in 2023 compared to the previous year and were up 14% compared to pre-pandemic levels, as consumers struggle with financial pressures, according to Cox Automotive data reported by Jalopnik. Cars are typically repossessed after falling behind on car payments for several months. Monthly bills are becoming unaffordable for many vehicle owners due to inflation, higher car prices, and high interest rates. The average monthly payment for new car buyers in the US was $760 per month for an auto loan in May 2024, with 17% of owners making monthly payments of more than $1,000. On top of high monthly car payments, consumers are also facing significant increases in car insurance costs and rising housing costs, which are contributing factors to missed payments, according to the article.
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