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 132,600 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 (RumbleOn) 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
Mar 12, 2024 - Producer Prices, Employment Rise
- According to the Bureau of Labor Statistics (BLS), producer prices for motor vehicle and parts wholesalers rose 11% in December 2023 compared to the previous year and by nearly 52% from 2019. Employment levels for motor vehicle wholesalers have been on the rise in recent years, up by 4.3% in December 2023 from December 2022. Wages for motor vehicle wholesalers declined slightly in December 2023 over December 2022, per the BLS. However, average hourly wages for the industry have grown nearly 20% from 2019 as companies increase pay to compete for workers in a tight labor environment.
- The number of units sold at auction in the first two months of the year has increased 13% from 2023, according to AuctionNet data from the National Auto Auction Association shared with Auto Remarketing. In total, 1.12 million units have been sold at auction through February. In February, there was a 16.9% increase in auction sales year over year, the largest increase in over two years. AuctionNet data also shows that commercial sales rose by 30% in January and 39% in February compared to the same months in the previous year. Additionally, there has been growth in late-model vehicles (3 years old and newer) at auction, up 17% year over year. Battery-electric vehicles represented a 1.3% market share of the auction market in February 2023, which is a 91.9% year-over-year increase compared to the previous year.
- Hybrid market share is expected to grow in 2024 as consumers continue to see hybrids as a comfortable choice in a transition away from internal combustion engine (ICE) vehicles, according to an analysis by Edmunds in its “2024 Predictions” report in Repairer Driven News. The hybrid market share reached nearly 10% in November 2023, an increase of 99% year-over-year compared to the previous year’s 4.9% share. Hybrid vehicles are outpacing EV demand, as EV market share grew by 25% during the same period. According to Ivan Drury, director of insights at Edmunds, “Sales are taking off for the humble hybrid. You’d be hard-pressed to find a hybrid—they’re almost all sold out. They’re vehicles for people who want to live their life with more benefit and less complexity.”
- US manufacturing activity contracted in February 2024, falling below the baseline for growth for the sixteenth consecutive month, according to the Institute for Supply Management’s Manufacturing ISM Report on Business. The Manufacturing PMI registered 47.8% in February, down 1.3 percentage points from the 49.1% recorded in January. A reading above 50% indicates manufacturing expansion. February’s New Orders Index was in the contraction zone at 40.2%. The February Production Index was 48.4%, a decrease from January’s 50.4%. Eight manufacturing industries tracked by the ISM reported growth in February: Apparel, Leather & Allied Products; Nonmetallic Mineral Products; Primary Metals; Plastics & Rubber Products; Fabricated Metal Products; Chemical Products; Miscellaneous Manufacturing; and Transportation Equipment. The industries reporting contraction in February were Furniture & Related Products; Machinery; Wood Products; Computer & Electronic Products; Food, Beverage & Tobacco Products; Paper Products; and Electrical Equipment, Appliances & Components.
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