Industry Analysis & Industry Trends
While the recession hit new car dealers hard, the industry has since recovered in the five years to 2014. increased discretionary spending and elevated confidence have led consumers to once again pursue big-ticket items, such as new vehicles. In addition, interest rates have plummeted, making the cost for consumers to finance vehicles relatively more affordable. In the five years to 2019, revenue for the New Car Dealers Industry is forecast to grow. Continued gains in consumer confidence will drive the industry's recovery, and increased discretionary spending will support greater demand for cars, SUVs and light trucks. Moreover, new vehicle introductions will drive consumer traffic to car dealers, thus, aiding revenue growth... purchase to read more
Industry Report - Starting a New Business Chapter
The New Car Dealers industry experiences moderate barriers, including state regulations, manufacturer franchise agreements and start-up costs. Every state has different licensing requirements and regulations for new car dealers. For example, in California, the largest new car market, prospective new car dealers must submit to background and credit checks, obtain a surety bond and provide a current franchising agreement.
Additionally, dealer licenses and franchise agreements must be renewed annually. Franchise fees, which vary by brand, number of stores and distance from other franchises, cost an average $25,000 per year, with reduced fees for dealerships owned by women or ethnic minorities... purchase to read more