Industry Analysis & Industry Trends
Like most automotive industries, the Used Car Dealers industry felt the impact of the recession and the dramatic slowdown in consumer spending. However, the industry has been somewhat recession-resistant due to its in-house financing arrangements. Growth over the five years to 2019 will be moderate, as used car dealers will face increased competition from new car dealers. The adoption of "lease here, buy here" financing options will help used car dealers stay competitive and increase profitability, but the effects of new legislation on financing practices will remain uncertain... 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