Interest abates: Rising interest rates will lead to demand and revenue declines

The New Car Dealers industry in Florida has experienced slow-to-moderate growth over the five years to 2017. Rising employment and income levels, as well as historically low interest rates, have driven up consumer confidence, spurring more consumers to make large purchases, such as automobiles. Moreover, a gradually aging vehicle fleet has also fostered demand and revenue growth, as buyers are more apt to trade in older vehicles for updated models. However, rising interest rates are troublesome for car dealers in Florida, especially operators in South Florida, which rely heavily on auto leasing to generate revenue. With the era of cheap credit slowly coming to an end, consumers will be less apt to lease or purchase new automobiles...read more.

Industry Statistics & Market Size
Revenue
$54bn
Annual Growth 12-17
1.2%
Forecast Growth 17-22
Profit
Employment
77,132
Businesses
1,189
What Our Customers Say

Industry Threats & Opportunities

  • While demand and revenue have increased, industry growth has ultimately been hampered by a recent uptick in interest rates
  • In response to increasing demand, some industry players expanded their operations
  • Higher interest rates and a drop in consumer confidence will contribute to the industry’s decline
  • Industry Report - Industry Analysis Chapter

    The New Car Dealers industry in Florida has grown moderately over the five years to 2017, with revenue increasing at an estimated annualized rate of 1.2% to reach $53.8 billion. Stronger demand has supported revenue gains over the past five years. Nonetheless, industry growth has been limited due to recent gains in interest rates, which have made financing new automobiles more expensive for consumers and businesses.Consumer confidence drives growthIndustry growth is due in large part to increasing employment levels, rising per capita disposable income and historically low interest rates. Increasing income levels have strengthened the purchasing power of consumers buying motor vehicles. Add...purchase to read more.

    Additional Insights for the New Car Dealers in Florida Industry

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

  • Provision of superior after sales service
  • Use of high volume/low margin strategy
  • Internet presence
  • IBISWorld analysts also discuss how external factors such as Average age of vehicle fleet and Per capita disposable income in Florida in the New Car Dealers in Florida industry impact industry performance..

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    What is the New Car Dealers in Florida Industry?

    This industry sells new and used passenger vehicles. Vehicles include passenger cars, light trucks, sport utility vehicles (SUVs) and passenger vans. New car dealers also sell parts and provide repair services.

    Industry Products
  • New vehicles
  • Used vehicles
  • Parts and service
  • Industry Activities
  • Selling new cars
  • Selling new light trucks
  • Selling used cars
  • Selling used light trucks
  • Providing vehicle maintenance and repairs
  • Providing financing and insurance services
  • Table of Contents

    Industry Definition
    Main Activities
    Similar Industries
    Additional Resources
    Industry Statistics Snapshot
    Industry Structure
    Executive Summary
    Executive Summary
    Key External Drivers
  • Average age of vehicle fleet
  • Per capita disposable income in Florida
  • Consumer Confidence Index
  • Yield on 10-year Treasury note

  • Current Performance
  • Consumer confidence drives growth
  • Challenges ahead
  • Chart: Revenue Growth

  • Industry Outlook
  • Interest rates on the rise
  • Consolidation and cost cutting
  • Table: New Car Dealers in Florida Industry Revenue Outlook

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

  • Supply Chains
    Key Buying Industries
  • Consumers

  • Key Selling Industries
  • Automobile Wholesaling
  • Car & Automobile Manufacturing
  • SUV & Light Truck Manufacturing

  • Products & Services
  • New vehicles
  • Used vehicles
  • Parts and service
  • Other
  • Chart: New Car Dealers in Florida Industry Products and Services Segmentation

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

  • Business Locations
    Chart: Business Locations by State
    Market Share Concentration
    Key Success Factors
    Cost Structure Benchmarks
    ProfitPurchasesWagesRent, utilities, marketing and other costs
  • Chart: Cost Structure Benchmarking – Sector vs New Car Dealers in Florida

  • Basis of Competition
    Barriers to Entry
  • Table: Barrier to Entry Checklist for the New Car Dealers in Florida Industry

  • AutoNation Inc.Atlantic Auto Group LLCGreenway Auto GroupPotamkin Automotive Group Inc.
  • Table: AutoNation Inc. - financial performance
  • Table: Atlantic Auto Group LLC - financial performance
  • Table: Greenway Auto Group - financial performance
  • Table: Potamkin Automotive Group Inc. - financial performance

  • Capital Intensity
  • Chart: Level of Capital Intensity for the New Car Dealers in Florida 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 New Car Dealers in Florida Industry
    Includes:
  • Industry Revenue (2008-2022)
  • Establishments (2008-2022)
  • Businesses (2008-2022)
  • Employment (2008-2022)
  • Wages (2008-2022)
  • New Car Sales (2008-2022)

  • Table: Annual Percentage Change for Key Industry Data
    Table: Key Ratios for Industry Key Data
    Big Three
  • Industry term for the three largest domestic automakers: General Motors, Ford and Chrysler.
  • Floor Plan Financing
  • A type of financing used to fund purchases of vehicles intended for sale.
  • Light-Duty Vehicle
  • A passenger vehicle, sport utility vehicle or truck weighing less than 14,000 pounds.
  • Powertrain
  • The combination of a vehicle's engine and transmission.
  • Surety Bond
  • A three-party agreement in which the third-party, or surety, agrees to fulfill contractual obligations.
  • Term Asset-Backed Securities Loan Facility (Talf)
  • A Federal Reserve program that issues asset-backed securities collateralized by student loans, auto loans, credit card loans and loans guaranteed by the Small Business Administration.
  • Why buy this report?

    The New Car Dealers in Florida industry market report contains strategic analysis of the key drivers influencing the industry. Save hours of time on research and prospecting using IBISWorld’s standardized, up-to-date reports on thousands of industries. Our industry research provides growth and profit forecasts for a five-year outlook period, presented in a clear and user-friendly format.

    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
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    This report on New Car Dealers in Florida:
    • 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 New Car Dealers in Florida 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 New Car Dealers in Florida, you can expect thoroughly researched, reliable and current information that will help you to make faster, better business decisions.

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