Pub. 17 2018-2019 Issue 1

N E W J E R S E Y C O A L I T I O N O F A U T O M O T I V E R E T A I L E R S 9 new jersey auto retailer W W W . N J C A R . O R G Below are a few of the graphs included in NJ CAR’s latest Economic Impact report. This informative document has been published annually for more than a decade and is used to edu- cate our elected officials, the media and the dealer community at large about the many economic contributions made by the franchised auto retailing industry in New Jersey. The franchised automotive retail industry is a $35 billion industry in New Jer- sey, that employs and supports more than 73,000 good-paying jobs that can’t be outsourced and are the backbone of the state’s retail economy. Economic Impact of Franchised New Vehicle Retailers on the New Jersey Economy EMPLOYMENT TOTAL FOR NEW VEHICLE RETAILING INDUSTRY - 2017 INDIRECT 34,632 DIRECT 38,480 TO STATEWIDE RETAIL EMPLOYMENT 2016 and 2017 2016 2017 % change ‘16 to ‘17 66,830 73,112 9.4% 461,500 477,900 3.6% 14.5% 15.3% STATE AND LOCAL TAXES COLLECTED AND/OR PAID BY FRANCHISED NEW VEHICLE DEALERSHIPS – 2017 STATE SALES $1,456,000,000 STATE & LOCAL PAYROLL $160,160,000 OTHER LOCAL $97,760,000 Automotive dealerships collected or paid a total of more than $1.7 billion in State and local taxes during 2017, up slightly from 2016. State sales tax revenue exceeded $1.45 billion. Federal tax revenue generated by dealerships was nearly $842 million. STATE AND LOCAL TAXES COLLECTED AND/OR PAID BY FRANCHISED NEW VEHICLE DEALERSHIPS – 2009, 2016 and 2017 2009 2016 2017 % change ‘16 to ‘17 State Sales Tax $925,750,000 $1,438,200,000 $1,456,000,000 1.2% State and Local Payroll Taxes $99,981,000 $150,450,000 $160,160,000 6.5% Real Estate and Other Local Taxes $55,016,000 $93,330,000 $97,760,000 4.7% TOTAL DEALERSHIP STATE AND LOCAL TAX REVENUE $1,080,747,000 $1,681,980,000 $1,713,920,000 1.9% Tax Revenue FEDERAL TAX SUMMARY FOR ALL FRANCHISED NEW VEHICLE DEALERSHIPS – 2009, 2016 and 2017 2009 2016 2017 % change ‘09 to ‘15 Federal Payroll Taxes $471,868,000 $744,600,000 $785,200,000 5.5% Federal Business Income Taxes $38,617,000 $54,570,000 $56,680,000 3.9% TOTAL $510,485,000 $799,170,000 $841,880,000 5.3% PERCENTAGE OF FRANCHISED NEW VEHICLE DEALERSHIP ADVERTISING EXPENSE BY MEDIA – 2017 PAPER 8% OTHER 9% TV 13% INTERNET 49% RADIO 7% MAIL 14% Franchised new vehicle dealerships spent over $421 million on advertising during 2017, up from $301 million in 2009. The Internet accounted for the largest percentage of dealership advertising (49%). New retail registrations of cars and light trucks in New Jersey fell to below 360,000 units in 2009. The market fully recovered, increasing to more than 530,000 units in 2016. New registrations declined slightly in 2017. Data Source: IHS Markit. NEW RETAIL LIGHT VEHICLE REGISTRATIONS IN NEW JERSEY 2008 – 2017 # OF REGISTRATIONS 600,000 550,000 500,000 450,000 400,000 350,000 2017 2016 2013 2012 2011 2010 2009 2008 2015 2014 Advertising New Vehicle Market Review NJ_CAR_EIS_2018.crw2.indd 7 5/29/18 1:12 PM AVERAGE FRANCHISED NEW VEHICLE DEALERSHIP SALES BY DEPARTMENT [$] - 2009, 2016, AND 2017 SALES IN MILLIONS ($) 45 40 35 20 25 20 15 10 5 0 2017 2016 2009 USED VEHICLE P&A SERVICE DEPT. NEW VEHICLE Total dealership sales (in dollars) increased by more than 60% between 2009 and 2016, but were only slightly up in 2017. New franchised automobile dealerships in New Jersey had total sales exceeding $35 billion during 2017. Average dealership sales were $67.4 million last year, up by more than $27 million from 2009, but just $200,000 higher than in 2016. Dealership Sales FRANCHISED NEW VEHICLE DEALERSHIP SALES SUMMARY 2009, 2016 and 2017 2009 2016 2017 change ‘16 to ‘17 Average Franchised New Vehicle Dealership Sales $40,100,000 $67,200,000 $67,400,000 0.3% TOTAL AUTOMOTIVE RETAILING SALES IN NJ $21,212,900,000 $34,272,000,000 $35,048,000,000 2.3% NJ_CAR_EIS_2018.crw3.indd 8 5/29/18 7:06 STATE AND LOCAL TAXES COLLECTED AND/OR PAID BY FRANCHISED NEW VEHICLE DEALERSHIPS – 2017 STATE SALES $1,456,000,000 STATE & LOCAL PAYROLL $160,160,000 OTHER LOCAL $97,760,000 Automotive dealerships collected or paid a total of more than $1.7 billion in State and local taxes during 2017, up slightly from 2016. State sales tax revenue exceeded $1.45 billion. Federal tax revenue generated by dealerships was nearly $842 million. STATE AND LOCAL TAXES COLLECTED AND/OR PAID BY FRANCHISED NEW VEHICLE DEALERSHIPS – 2009, 2016 and 2017 2009 2016 2017 % change ‘16 to ‘17 State Sales Tax $925,750,000 $1,438,200,000 $1,456,000,000 1.2% State and Local Payroll Taxes $99,981,000 $150,450,000 $160,160,000 6.5% Real Estate and Other Local Taxes $55,016,000 $93,330,000 $97,760,000 4.7% TOTAL DEALERSHIP STATE AND LOCAL TAX REVENUE $1,080,747,000 $1,681,980,000 $1,713,920,000 1.9% Tax Revenue FEDERAL TAX SUMMARY FOR ALL FRANCHISED NEW VEHICLE DEALERSHIPS – 2009, 2016 and 2017 % change ‘09 NEW RETAIL LIGHT VEHICLE REGISTRATIONS IN NEW JERSEY 2008 – 2017