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 Products Chapter
The Used Car Dealers industry generates revenue by selling used vehicles and providing vehicle parts and services. Financing and insurance services, which are directly tied to used vehicle sales, also generate a significant share of industry revenue. Used car dealers directly compete with the Auto Mechanics (IBISWorld report 81111) and New Car Dealer (44111) industries for maintenance work. The parts and services segment is gaining importance in all three industries, which will intensify competition.
Used car dealers frequently operate in under-supplied niches of these markets, in particular catering to individuals with poor access to credit... purchase to read more