One-time offer: Rising disposable incomes will likely lead to more big-ticket purchases

The Used Car Dealers industry in California is expected to trend higher over the five years to 2017. Since the industry relies strongly on consumers to drive revenue growth, fluctuations in disposable income dictate the direction of the industry. Therefore, when per capita disposable income trended upward in the five-year period, industry revenue followed suit. Used car dealers benefited from offering independent financing solutions over the past five years. While new car dealers rely on financing companies to fund consumers' purchases, used car dealers often offer in-house financing, which is more flexible and allows customers with any level of credit to make a purchase...read more.

Industry Statistics & Market Size
Revenue
$11bn
Annual Growth 12-17
6.2%
Forecast Growth 17-22
Profit
Employment
23,475
Businesses
12,626

Industry Threats & Opportunities

  • Used car dealers benefited from offering independent financing solutions over the past five years
  • The adoption of fixed prices is spreading throughout the industry
  • Substantial improvements in economic conditions may hamper growth
  • Industry Report - Industry Analysis Chapter

    The Used Car Dealers industry in California has grown over the five years to 2017. Per capita disposable income and consumer spending in California have risen, encouraging consumers to increase demand for big-ticket items such as vehicles. Additionally, looser credit access has allowed consumers with bad credit to purchase used vehicles, bolstering industry demand. Moreover, in recent years, consumers with good credit have opted for less-expensive used vehicles due to the rising price of new vehicles, which has caused prime and super prime customers’ share of the market to increase while also contributing to industry growth. To this end, IBISWorld expects industry revenue to grow at an annualized rate of 6.2% to $10.6 billion over the five years to 2017. How...purchase to read more.

    Additional Insights for the Used Car Dealers in California Industry

    IBISWorld identifies 250 Key Success Factors for a business.The most important for the Used Car Dealers in California Industry are

  • Provision of superior after-sales service
  • Superior financial and debt management
  • Effective cost controls
  • IBISWorld analysts also discuss how external factors such as Per Capita Disposable Income in California and Price of new cars in the Used Car Dealers in California industry impact industry performance..

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    What's in this report

    What is the Used Car Dealers in California Industry?

    This industry sells used passenger vehicles, including passenger cars, light trucks, sports utility vehicles (SUVs) and passenger vans. Used car dealers also provide financing and insurance services.

    Industry Products
  • Used vehicles
  • Services and parts
  • Finance and insurance
  • Industry Activities
  • Used automobile
  • Used light truck
  • Vehicle financing
  • Table of Contents

    Industry Definition
    Main Activities
    Similar Industries
    Additional Resources
    Industry Statistics Snapshot
    Industry Structure
    Executive Summary
    Executive Summary
    Key External Drivers
  • Per Capita Disposable Income in California
  • Price of new cars
  • Average age of vehicle fleet
  • Per Capita Debt in California
  • World price of crude oil

  • Current Performance
  • Continued growth
  • Shifting gears
  • Technological advantages
  • Chart: Revenue Growth

  • Industry Outlook
  • Changes around the corner
  • Preparing for success
  • Table: Used Car Dealers in California Industry Revenue Outlook

  • Industry Life Cycle
  • Life cycle reasons
  • Chart: Benchmarking - Used Car Dealers in California Industry Lifecycle vs The Economy

  • Supply Chains
    Key Buying Industries
  • Consumers

  • Key Selling Industries
  • Auto Mechanics
  • Auto Parts Stores
  • Automobile Wholesaling
  • Car Body Shops
  • Car Wash & Auto Detailing
  • Oil Change Services

  • Products & Services
  • Used vehicles
  • Services and parts
  • Finance and insurance
  • Other
  • Chart: Used Car Dealers in California Industry Products and Services Segmentation

  • Major Markets
  • Prime customers
  • Subprime customers
  • Nonprime customers
  • Super prime customers
  • Deep subprime customers
  • Chart: Major Market Segmentation for the Used Car Dealers in California Industry

  • Business Locations
    Chart: Business Locations by State
    Market Share Concentration
    Key Success Factors
    Cost Structure Benchmarks
    ProfitPurchasesWagesOther
  • Chart: Cost Structure Benchmarking – Sector vs Used Car Dealers in California

  • Basis of Competition
  • Internal
  • External

  • Barriers to Entry
  • Table: Barrier to Entry Checklist for the Used Car Dealers in California Industry

  • CarMax Business Services LLC, Enterprise Holdings Inc., Ball Auto Group, East County Preowned Superstore,
  • Table: CarMax Business Services LLC - financial performance
  • Table: Enterprise Holdings Inc. - financial performance
  • Table: Ball Auto Group - financial performance
  • Table: East County Preowned Superstore - financial performance

  • Capital Intensity
  • Chart: Level of Capital Intensity for the Used Car Dealers in California Industry
  • Chart: Tools of the Trade: Growth Strategies for Success

  • Technology & Systems
    Revenue Volatility
  • Chart: Volatility vs Industry Growth

  • Regulation & Policy
    Industry Assistance
    Table: Industry Data for the Used Car Dealers in California Industry
    Includes:
  • Industry Revenue (2008-2022)
  • Establishments (2008-2022)
  • Businesses (2008-2022)
  • Employment (2008-2022)
  • Wages (2008-2022)
  • CA - Per Capita Disposable Income in California (2008-2022)

  • Table: Annual Percentage Change for Key Industry Data
    Table: Key Ratios for Industry Key Data
    Bad Debt Expense
  • Bad debt expense represents the amount of noncollectable accounts receivable that occurs in a given period. This occurs when a customer is unable to fulfill its obligation to pay an outstanding debt.
  • Buy Here, Pay Here (Bhph)
  • A financing option at some dealerships in which customers secure car loans without providing their credit history. As a general rule, a down payment and proof of income are the only items required.
  • Lease Here, Pay Here (Lhph)
  • A financing option at some dealerships in which customers lease a vehicle, but the dealership retains ownership.
  • What Our Customers Say

    Why buy this report?

    IBISWorld’s industry research report on Used Car Dealers in California can be used to help you understand the industry’s market size, growth potential and major companies. Five-year forecasts provide insight into the industry’s prospects, so you can make decisions with confidence. This information is perfectly suited to informing your business plans, pitch books, benchmarking and SWOT analysis.

    IBISWorld industry market research reports enable you to:
    • Find out about key industry trends
    • Identify threats and opportunities
    • Inform your decisions for marketing, strategy and planning
    • Quickly build competitive intelligence
    This report on Used Car Dealers in California:
    • Provides Market Size information to assist with planning and strategic decisions.
    • Includes the necessary information to perform SWOT, PEST and STEER analysis.
    • Helps you understand market dynamics to give you a deeper understanding of industry competition and the supply chain.
    • Analyses key performance and operational metrics so that you can benchmark against your own business, that of your customers’ businesses, or your competitors’ businesses.
    The Used Car Dealers in California market research report includes:
    • Historical data and analysis for the key drivers of this industry
    • A five-year forecast of the market and noted trends
    • Detailed research and segmentation for the main products and markets
    • An assessment of the competitive landscape and market shares for major companies
    • And of course, much more

    IBISWorld reports on thousands of industries around the world. Our clients rely on our information and data to stay up-to-date on industry trends across all industries. With this IBISWorld Industry Research Report on Used Car Dealers in California, you can expect thoroughly researched, reliable and current information that will help you to make faster, better business decisions.

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