Industry Analysis & Industry Trends
Over the five years to 2015, 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 2020, 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 - Industry Products Chapter
New car dealers sell new and used vehicles and provide parts and repair services. Due to historically low interest rates, consumers have been favoring new vehicles as opposed to used vehicles. As a result, revenue generated from new vehicles is expected to increase over the five-year period. Although this segment is anticipated to increase as a share of overall revenue, the parts and repair services segment generates the greatest profit margins and is expected to play an integral part in bolstering profit margins.
In 2015, new vehicle sales are estimated to generate 57.6% of industry revenue. Demand for new vehicles fell during the recession as consumer spending dropped, but has since picked up... purchase to read more