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 SWOT Analysis Chapter
The New Car Dealers industry is in the mature stage of its life cycle. Industry value added (IVA), which measures the industry's contribution to the overall economy, will grow at an estimated average annual rate of 2.5% over the 10 years to 2021. By contrast, GDP is expected to grow at an annualized rate of 2.3% over the same period. Although IVA is expected to grow at a faster rate than the overall economy, this is not indicative of a growing industry because the industry is still recovering from the low base provided by the economic recession. Industry revenue continued to rebound in the beginning of the 10-year period, as economic conditions improved and new vehicle sales increased.
This industry generally follows the overall economy, which is indicative of a mature industry... purchase to read more