Industry Analysis & Industry Trends
Over the five years to 2016, 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 2021, 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 2016, new vehicle sales are estimated to generate 57.7% of industry revenue. New car dealers continue to benefit from attractive new models and easing credit terms... purchase to read more