Independent Dealers: The Backbone of U.S. Used Vehicle Retail

Independent automobile dealers are a key component in the U.S. retail auto ecosystem. According to NIADA’s 2025 report, the United States had nearly 117,000 licensed independent dealer locations in 2025, compared with 16,990 franchised light‑vehicle rooftops.

NIADA stresses that licensing alone does not represent real retail activity. NIADA’s annual report has identified approximately 53,000 “active” independent dealers. The association defines “active” independent dealers as those selling at least 50 vehicles annually.

Unsurprisingly, California (12 percent), Texas (10 percent), and Florida (eight percent) are at the top of the rankings on active independent dealers on a state level. A somewhat unexpected discovery in the number of active independent dealers in Georgia (seven percent), Ohio (four percent), and North Carolina (two percent). Ohio’s population of independent dealers is another marking of the state’s large retail market aligning with our prior analysis of dealership transactions in 2025. The breakdown of active independent dealers by State is provided below:

Light Vehicle Sales by Vehicle Type and Dealership Type

Total new and used light vehicle sales continue to inch their way back to pre-pandemic volumes. Total used vehicle sales continue to be dominated by Used Private Sales, making up 47 percent of total light used vehicle sales, with franchised dealers contributing 27 percent and independent dealers contributing 26 percent. It is important to note that the 2025 data is a Cox Automotive estimate, and the used independent dealers figure includes used direct sales (Carvana, etc.).

Used independent dealers are an important component of the U.S. Retail Automotive ecosystem. As of March 17, 2026, the average transaction price of light vehicles is $50,216 compared to the average listed price by independent dealers as reported by NIADA:

Independent dealers service the retail automotive market across the economic spectrum. Independent dealers provide access to reconditioned wholesale vehicles that consumers would otherwise not have access to.

An Emerging Opportunity for Independent Dealers

NIADA anticipates that EV lease maturities will exceed 300,000 and approach 600,000 in 2027. These vehicles will flow directly into wholesale and retail used channels. Many of these vehicles are late-model, well-equipped EVs with relatively low miles. An important consideration for independent dealers is the typical 5-year depreciation rate for EVs. According to recharged.com, the typical 5-year depreciation rate ranges from a low of 48 percent (Rivian R1t) to a high of 70 percent (Tesla Model S, Tesla Model X, and Nissan Leaf).

This depreciation rate allows access to newer, lower-mileage, and better equipped vehicles to independent dealers without significantly increasing the average list price of vehicles sold. This change is already being observed, with used EV sales increased 35 percent year-over-year, and 34 percent of used EVs are priced under $25,000.

Final Thoughts

Independent dealers will continue to anchor the U.S. used‑vehicle market by providing affordability, credit access, and deep local-market reach. The 2026 environment is expected to remain healthy, with near‑term retail demand supported by tax refunds and a wave of off‑lease EVs that will reshape inventory availability, pricing, and consumer expectations.

Independent dealers who prepare operationally and invest in capital improvements now will be best positioned to capture this next phase of growth.