For almost all of us, purchasing a car is one of the largest investments we make in our lifetimes. We put a lot of thought into this decision, conducting extensive research on the cars that meet our needs, visiting multiple dealerships to test drive vehicles, and finally making our purchase. Louisiana’s dealers put just as much effort into ensuring Louisiana customers drive off with the car of their dreams.
This hard work from Louisiana’s dealers significantly benefits our state economy. Collectively, these dealerships provide over 38,400 jobs, with an average annual income exceeding $75,000 per employee. They contribute to a combined payroll of $1.5 billion, generating more than $325 million in state and federal income taxes.
Last year, franchised dealers generated $19.2 billion in total sales and contributed a substantial $672 million in tax revenue to Louisiana, solely from new car sales.
At the Louisiana Automobile Dealers Association (LADA), we represent Louisiana’s nearly 350 franchised new car and heavy truck dealers and over 150 allied associate members across the state. LADA is dedicated to educating state leaders and the public about the economic significance of Louisiana’s auto dealerships.
Louisiana auto dealers — often family-owned through generations — are deeply rooted in the communities they serve and play pivotal roles as both business leaders and active community participants. For example, in 2023, Louisiana dealerships made contributions exceeding $18 million to charities and nonprofit organizations. Especially crucial during hurricane season, they also step up to provide essential supplies and resources to communities affected by extreme weather conditions.
We experience these economic and philanthropic benefits from our dealers thanks to Louisiana’s franchise laws, which are designed to protect consumers and uphold ethical business standards among dealerships. These laws prevent fraudulent practices, unfair competition, and undue influence and control of independent Louisiana car dealers by their manufacturers and distributive organizations.
A robust dealer franchise system ensures auto dealers compete for customers, driving prices down and customer service quality up. Through this system, customers always have reliable access to a dealer in the community when they encounter issues with their car, rather than being left waiting in a customer service phone queue.
As the leading voice for Louisiana’s robust franchise system, LADA remains committed to consumer protection and satisfaction. By upholding high standards of business conduct and ethics among its members, LADA contributes to building trust and confidence in the automobile purchasing experience for Louisiana residents, delivering economic benefits to our state.
Looking ahead, LADA continues to innovate and collaborate on initiatives that benefit both members and the broader community. An upcoming partnership with Keep Louisiana Beautiful and Lt. Gov. Billy Nungesser will launch a roadside litter prevention campaign.
At LADA, we are always evolving our strategies and initiatives to meet the challenges and opportunities of a dynamic automotive industry. By adapting to technological advancements, market trends and regulatory changes, Louisiana’s auto dealers are a proactive force, providing a vibrant automotive marketplace and a quality car shopping experience to Louisianians.
Coulter McMahen is president and CEO of the Louisiana Automobile Dealers Association. He may be reached at cmcmahen@lada.org.
