Resources / Tools / Advertising budget benchmark

Dealership advertising budget benchmark.

Two numbers a store already knows, checked against what NADA reports the average franchised dealership actually spends. Total advertising of $586,246 a year, $739 per new vehicle sold, and a four-line split in which three search channels take 60.6% of everything.

Check a budget against the average store.

The fields open on the NADA average itself, so every variance reads zero until a real figure replaces one. Total spend and units sold are enough on their own; the channel split is optional and is where the interesting part usually is.

Your store, last full year
Everything in the advertising ledger for the year, including what sits inside a platform or website contract.
New units only, to match how NADA states the per-vehicle figure.
By channel, optional
Including the portion bundled into a platform contract. Most stores have to ask the vendor for this one.
Broadcast, print, direct mail, events, sponsorships and the rest.

Advertising cost per new vehicle sold

$739

on benchmark per vehicle, against the NADA Data 2025 average of $739.

Index, cost per vehicle (100 = average)
100
Index, total spend (100 = average)
100
Total against the average store
on benchmark against the average store

By channel, against the published shares

Channel
Your spend
Share
vs benchmark
Search engine marketing
$123,698
21.1%
on benchmark
Third-party listing sites
$117,249
20.0%
on benchmark
SEO and website
$114,318
19.5%
on benchmark
Everything else
$230,981
39.4%
on benchmark

The four channel figures account for the whole budget.

At $9,527 a month this line sits near the $9,527 NADA average. The average is a description of what stores do, not evidence that it works, and this is the line least often asked to justify itself.

Allocated across the four lines: $586,246. Unallocated: $0. SEO and website, per month: $9,527.

The benchmarks, and what they are worth.

Every figure the tool compares against comes from NADA Data 2025, the annual financial profile of franchised new-car dealerships in the United States. They are printed here so the comparison can be checked rather than trusted.

Where the average dealership's $586,246 goes
Total advertising, average franchised dealership, 2025 $586,246 a year · $739 per new vehicle sold 21.1% $123,698 20.0% $117,249 19.5% $114,318 39.4% $230,981 Search engine marketing Third-party listing sites SEO and website Usually bundled, never invoiced Everything else: broadcast, print, direct mail, events 60.6% of the budget is a search channel.
Three search lines take more than the whole of broadcast, print, direct mail and events combined.

One limitation to state plainly. NADA describes franchised new-vehicle dealerships, so an independent used car lot, a service-only business, a powersports or golf cart dealer should read this as directional rather than as a peer group. The shape of the split usually holds; the absolute figures do not.

How to read the result without drawing the wrong conclusion.

An average is a description of what stores do. It is not evidence that what they do works, and treating it as a target is the most common misuse of a benchmark like this one.

The SEO line is the one nobody can state. Find out what it is currently producing.

Get the baseline audit

Questions about dealership advertising budgets.

How much does the average car dealership spend on advertising?

$586,246 a year, or $739 per new vehicle sold, per NADA Data 2025. Inside that, search engine marketing takes $123,698 (21.1%), third-party listing sites $117,249 (20.0%), and SEO and website optimisation $114,318 (19.5%). Those three account for 60.6% of the budget, which means dealership advertising is now mostly a search budget with some broadcast attached.

What is a good advertising cost per vehicle sold?

The NADA average is $739, and that describes what dealerships do rather than what works. A store below it is not automatically efficient, because the figure says nothing about gross retained or how much volume was bought with discount. A store above it is not automatically wasteful. The useful reading is the direction of travel across several years against the store's own gross per unit.

How much of the budget should go to SEO?

The average store puts 19.5% into SEO and website optimisation, which is $114,318 a year or roughly $9,527 a month. Treating that as the correct share is a mistake in both directions, because the average is a description of behaviour rather than evidence of effectiveness. The sharper question is what share of it is an owned asset that survives a vendor change, and what share is rent on a platform. What the platform actually constrains →

Why can most dealerships not state their SEO spend?

Because it is bundled inside a website or platform contract rather than invoiced separately, so no document at the store shows it on its own. Nobody signs off on $9,527 a month; they sign off on a platform. Ask the vendor to state in writing what portion of the monthly fee is allocated to SEO, content and optimisation. A vendor unwilling to state it has answered the question.

Where does the benchmark data come from?

NADA Data 2025, the National Automobile Dealers Association's annual financial profile of franchised new-car dealerships in the United States. Every benchmark here is from that report and is printed on this page so it can be checked. Because it describes franchised new-vehicle stores, an independent lot, a service-only business or a powersports dealer should read the comparison as directional.

Does the tool store or send the numbers entered?

No. The arithmetic runs entirely in the browser, nothing is transmitted, and there is no email gate. The figures stay on the device and are gone when the tab closes. The SEO ROI calculator → works the same way.

One line in that budget is supposed to compound.

Search engine marketing and listing sites stop the day the invoice does. The site and its visibility are the only part a store owns at the end of the year. The baseline audit reports what that line is currently producing, and whether any engine names the store at all.

Request a baseline audit

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