Turning DATA Into Dollars: Key Insights From 2025 NADA DATA.

Every year, the National Automobile Dealers Association (NADA) releases NADA DATA, a comprehensive financial profile of franchised new-car dealerships. It’s a treasure trove of insights, covering everything from average units sold per dealership and new-vs.-used vehicle sales to transaction prices, advertising expenditures, and more.

The 2025 edition has recently been released and includes data from 16,997 reporting dealerships. For the past 16 years, I have reviewed each report in detail, summarizing key findings for media professionals seeking to deepen their understanding of the automotive category.

As many automotive manufacturers have shifted their focus from lower-priced sedans to higher-priced trucks and SUVs, the average new vehicle sold for $48,205 in 2025, up from $33,419 (+44%) ten years ago. As a result, the average monthly consumer auto loan payment has increased from $493 to $767 (+55%) during that same period.

If your hunch is that dealership advertising budgets have been slashed over the past decade, here are the facts: The average dealership advertising spend in 2025 was $586,246, up 7.8% over 2024, with dealerships investing $739 for every new vehicle sold, an increase of 4.8% over the prior year. The 2025 ad-to-sales ratio, or the percentage of total dealership revenue invested in advertising, was 0.77%.

By comparison, the average dealership advertising spend in 2015 was $520,029, or $633 per vehicle sold. That represents a 12.7% increase in total advertising expenditures and a 16.2% increase in advertising cost per vehicle sold over the past decade. However, the ad-to-sales ratio has declined significantly, dropping 23% from 1.00% in 2015.

As many of you have likely experienced firsthand, the average dealership radio budget has fallen from $83,725 (16.1% of the total advertising budget) to $40,451 (6.9% of the total budget) during that same period. Not surprisingly, the largest shares of the 2025 advertising budget were allocated to search engine marketing (21.1%), third-party websites (20.0%), and search engine optimization (19.5%).

As in previous years, the overwhelming shift has been from top-of-mind dealership brand building to bottom-of-the-funnel digital lead generation. But at what cost?

According to NADA, digital leads close at significantly lower rates (8%–12%) because they tend to be more price-focused and lower in quality. In contrast, showroom customers close at rates of 25%–30% and often generate 15%–25% higher front-end gross profit margins, according to Cox Automotive and J.D. Power.

So, if a consumer is shopping for a specific brand and there are multiple dealerships in the market, what differentiates one dealership from another? Since the vehicle itself is largely a “commodity,” the deciding factor often comes down to price.

Smart dealers, however, can reframe that conversation by telling their story and emphasizing value-added services such as honoring competitors’ advertised prices, at-home test drives, three-day return policies, complimentary oil changes, loaner vehicles, Uber rides, towing assistance, free car washes for life, and lifetime brake and battery programs.

While many assume every general manager is familiar with the NADA DATA report, our experience suggests otherwise. Most dealership executives have been grateful for the insights and trends, using them as benchmarks to evaluate and, in many cases, increase their overall advertising investment.

To receive a complimentary copy of my 2025 NADA DATA Executive Summary, please contact me at Michael.Guld@guldresource.com.

Michael Guld is President of System 21©, a sales and marketing revenue development program, and the author of The Million Dollar Media Rep: How to Become a Television and Radio Sales Superstar. Connect at Linkedin.com/in/michaelguld/