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Economic Impact

In 2018 OADA conducted a statewide survey of Ohio dealer members and the tremendous impact they have on their local communities and the state of Ohio's economy; the results were staggering:

Dealership Sales

Number of New Vehicle Dealerships         825

New Vehicles Sold                                    651,017

New Vehicle Sales                                   $21.9 billion

Total Retail Sales                                     $39.4 billion

 

Tax Impact

Sales Tax Generated                               $2 billion

Represents approx. 15.4% of total sales tax collected in Ohio

Commercial Activity Tax Paid                   $93.1 million

Real Estate Tax Paid                                $67.7 million

Payroll Tax Paid                                       $615.2 million

 

Employment

Dealership Employees                             55,192

Annual Payroll                                          $2.8 billion

Advertising

Annual Investment                                    $63 million

Charitable Contributions

Annual Investment                                     $19.9 million

 

The Average Franchised New Vehicle Dealership in Ohio...

  • Generates $47.5 million in total retail sales
  • Generates $26.4 million in new vehicle sales
  • Employs 67 people
  • Pays $3.3 million in employee wages
  • Collects and pays $2.4 million in state sales tax
  • Pays $741,231 in payroll taxes
  • Pays $81,564 in real estate taxes
  • Pays $112,173 in Commercial Activity Tax
  • Spends $558,412 on advertising
  • Donates $24,020 to charity

Why Does the State of Ohio Require A 2-Tier Distribution Model?

The Ohio Legislature has recognized the economic efficiency and consumer benefits inherent in a two-tiered system for the distribution and sale of motor vehicles. This time-proven system, where manufacturers make vehicles and separate, independently-owned dealerships sell them, reduces costs, adds efficiencies, and diversifies risk for the consumer. The benefits of this two-tier system for consumers and the State of Ohio include the following:

Dealers Compete Fiercely With Each Other, Which Benefits Consumers

Inter- and intra-brand competition improves customer service and the ability to negotiate price, as dealerships compete for every vehicle sale and service opportunity. Manufacturer-operated stores create a monopoly and eliminate a consumer’s ability to negotiate.

Franchised Dealers Offer an Extra Layer of Accountability for Public Safety

Ohio motor vehicle laws require that franchised dealers have service facilities to perform warranty, recall, and service work. Having a dealer advocate on their side makes safety, warranty and service solutions easier for consumers.If a manufacturer goes bankrupt or stops selling vehicles (like Pontiac, Suzuki, and Oldsmobile) they leave customers behind. Independently owned franchised dealers remain in the local community to fix customers’ cars, irrespective of the manufacturer’s demise. This diversification of risk is good for consumers.

Dealers Generate Good-Paying Local Jobs (That Can't Be Outsourced), As Well As Significant Tax Revenues That Benefit Both State and Local Economies

Ohio franchised dealers directly employ more than 55,000 men and women in good-paying, local jobs with
benefits and opportunities for personal advancement and professional development. The annual payroll for
our industry equals $2.8 billion. This $39 billion industry in Ohio also generates $2 billion in state sales tax. In addition, franchised dealers in Ohio contribute almost $20 million to local charities and civic organizations
annually.

Ohio has chosen this "tried and true" two-tier system for selling motor vehicles because of its affordability, convenience, and accountability for manufacturers, the state and most importantly, its citizens.

*the above information reflects data from the year 2018.