Industry Analysis & Industry Trends
In the five years to 2014, revenue for the Used Car Dealers industry is expected to trend higher, albeit off a low recessionary base.When disposable income plummeted in the midst of the recession, industry revenue followed suit. In addition, consumers found it difficult to finance a vehicle with tighter credit standards, hampering demand. Nevertheless, disposable income rebounded in the latter part of the five-year period, along with looser credit standards, benefiting industry revenue. In the five years to 2019, rising disposable income levels and consumer confidence are anticipated to increase, increasing demand for big-ticket items such as used cars. However, interest rates are forecast to rise, deterring demand for vehicle purchases, threatening growth... purchase to read more
Industry Report - Industry Key Buyers Chapter
The Used Car Dealers industry is highly fragmented, with nonemploying dealerships representing about 75.7% of establishments. In 2014, the top four firms account for less than 20.0% of industry revenue, with the largest used car dealer, CarMax, generating about 13.5% of revenue. Industry concentration has increased over the five years to 2014. Most of this growth has occurred at CarMax's dealerships, which have been gaining market share over smaller dealerships due to the company's unique approach to used car sales, emphasizing convenience and quality. Traditional used car dealerships differ significantly from this approach, preferring to maximize profit on each individual sale.
The industry is firmly in the mature phase of its life cycle... purchase to read more