Used Car Dealers NAICS 441120

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Industry Summary
The 23,700 used car dealers in the US sell pre-owned vehicles purchased from the general public and other sources. Unlike new car dealers, used car dealers generate little revenue from maintenance and repair services. Most firms outsource service agreements to a third party.
High Cost of Inventory
The used car dealer industry is capital intensive with most firms requiring outside funding to build inventory, which accounts for 55-59% of total assets.
Shift to Online Sales
The used car dealer industry has accelerated the shift to online sales of vehicles.
Recent Developments
Aug 14, 2025 - Used Car Prices Climbing Faster Than New Cars
- Prices for used cars are rising faster than those for new ones, mostly due to a squeeze in supply left over from the pandemic that is further exacerbated by US trade policies. The cost of a used car rose 0.5% from the previous month in July 2025 and was 4.8% higher than the same time last year, according to the monthly inflation report from the US Department of Labor. By comparison, new car prices jumped 0.4% during July. The average price for a 3 year-old car sits at $30,000, per Edmunds. In addition to the pandemic supply problems, more consumers have opted to buy leased cars rather than turn them in after three years. Expired lease trade-ins are historically a major source of used auto supply. Despite the higher prices, used cars might still be viewed as the better deal for consumers than buying new.
- The seesawing automobile market continues with consumer intent to buy a car shifting almost as often as the 25% US tariffs on imported automobiles. Tariffs are driving up auto prices (Ford, Subaru, and Toyota have all boosted prices, citing tariffs) and a survey from Santander Holdings USA shows a renewed rush to buy now before prices climb higher. About 55% of consumers will buy a new car in the next year (up from 47% in Q1 2025). One in five US households sped up big purchases in Q2, with 41% of those transactions being a car. Half of consumers are also likely to take out an auto loan, while 42% will buy a used car, illustrating how tariffs have downstream effects. After a surge of auto buying in the spring, more consumers (42%) expect the situation to be long-term and will buy a car in the next three months.
- Used car prices have hit their highest levels in three years and on average are only $17,000 cheaper than a new car, the narrowest gap since 2022, according to a recent study by online automotive resource Edmunds. The report shows that the average price for a three-year old or less used car has risen to $30,000. In addition, the average age of trade-in vehicles has risen from 7.3 years to 7.6 years in the span of only a year, indicating consumers are driving their cars for longer. The price bumps go back to pandemic-era semiconductor shortages that shrunk new car inventories, which eventually became today’s shortage of used car inventory. Prices for used vehicles are also soaring due to a rush from consumers to buy used cars to offset new car price increases resulting from the Trump administration’s tariffs on foreign automobiles.
- Every year used car dealers add about $11.8 billion in hidden fees on 26 million used automobiles sold, according to a study of sales transactions by used car app CarPilot. The fees are more common than most car buyers know, with CarPilot finding 71% of used car shoppers encounter the hidden fees on US auto brands versus 64% on foreign autos. Some fees are legitimate, while others CarPilot ranks as either illegitimate (such as wheel etching, wheel locks, warranties, exterior paint protection, etc.) or excessive (licensing, e-filing fees, and title and related documentation fees). Customers can avoid being blindsided by fees if they contact the dealer beforehand and settle on a pre-arranged price or research the average fees in the states they live in. Some states including California and New York require clear and itemized disclosure of added fees, a practice that isn’t uniform nationwide.
Industry Revenue
Used Car Dealers

Industry Structure
Industry size & Structure
The average used car dealer operates out of a single location, employs 7 workers, and generates $6.1 million annually.
- The used car dealer industry consists of over 23,700 firms that employ 163,000 workers and generate $146.4 billion annually.
- The industry is concentrated at the top and fragmented at the bottom; the top four companies account for about 20% of industry revenue.
- Large firms include CarMax, DriveTime, and America’s Car-Mart. AutoNation and Penske Automotive Group also have used car dealerships.
Industry Forecast
Industry Forecast
Used Car Dealers Industry Growth

Source: Vertical IQ and Inforum
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