As the 95th General Assembly kicks off, we are reminded that it is more critical than ever to constantly promote the important role Arkansas dealers play in the state’s economy. This includes emphasizing the benefits of the franchise model in general. These benefits fall into the following key categories.
Local Economic Benefits
Arkansas dealers generate good-paying, local jobs with benefits and opportunities for advancement and professional development. New car and truck dealerships in Arkansas are a $12.5 billion per year business and have a total payroll of nearly $907 million, directly employing more than 12,500 people across the state and supporting another 10,500 jobs. Jobs at local dealerships are more than just jobs; they become high-paying careers for thousands of Arkansans. There are almost 260 new car and truck dealers in Arkansas operating in large and small communities across the state, providing Arkansans access to vehicle sales and service in or near their local communities.
Price Competition
Independently owned, local new car and truck dealers compete fiercely for vehicle sales and service both intra- and inter-brand. This competition drives down costs and improves customer service by giving Arkansans the ability to negotiate vehicle prices and trade-in values and choose which dealership best fits their needs.
Accountability and Safety
Arkansas dealerships ensure safety recalls and warranty work are addressed fairly and efficiently because their interests are more aligned with Arkansans. Manufacturers view safety recalls and warranty work as an expense while local dealerships create an extra layer of accountability for public safety. For Arkansans, having a dealer advocate on their side makes safety, warranty and service solutions easier and more beneficial for all consumers.
Dealerships truly are the Arkansas economic engine, and it is the responsibility of AADA to make sure this message is always promoted. It is critical for our continued success at the State Capitol.