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 SWOT Analysis Chapter
The Used Car Dealers industry is mature, and, relative to other automotive industries, has been fairly recession-resistant. Although used car dealers faced sharp revenue declines in 2009, the drops were modest in comparison with new car dealers. Over the 10 years to 2019, industry value added, a measure of the industry's contribution to the economy, is expected to grow at an average annual rate of 2.7%. By contrast, GDP is expected to grow 2.5% over the same period.
The number of used car dealerships is highly stable. Moreover, the industry has minimal barriers to entry, allowing individuals or nonemployers to participate. Nonemploying establishments are estimated to generate about 15.2% of industry revenue in 2014... purchase to read more