Still cruising: Increased per captia disposable income and access to credit will spur revenue growth

The Used Car Dealers industry in Florida relies heavily on consumers to drive revenue growth, and fluctuations in disposable income largely dictate the direction of the industry. Over the past five years, both per capita disposable income levels and access to credit increase and in turn, industry revenue followed suit, growing over the five years to 2017. Over the next five years, these trends are expected to continue, and revenue is forecast to grow, albeit at a slower rate. However, used car dealers are expected to continue to experience high levels of external competition from the New Car Dealers industry, as those operators increasingly turn to used car sales as a significant source of revenue...read more.

Industry Statistics & Market Size
Revenue
$8bn
Annual Growth 12-17
5.0%
Forecast Growth 17-22
Profit
Employment
22,271
Businesses
12,944

Industry Threats & Opportunities

  • Fluctuations in disposable income largely dictate the direction of the industry
  • Used car dealers are working to further reduce reliance on credit-issuing companies
  • Stronger gains in per capita disposable income are expected to drive the industry's growth
  • Industry Report - Industry Analysis Chapter

    The Used Car Dealers industry in Florida has trended upward over the five years to 2017. Per capita disposable income and consumer spending in Florida have risen, which encouraged consumers to increase demand for big-ticket items, including vehicles. Moreover, increased access to credit has enabled consumers with below-average credit to purchase used vehicles, bolstering industry demand. Additionally, according to Experian Automotive, consumers with good credit have opted for less-expensive preowned vehicles due to the rising price of new vehicles, which has also contributed to industry growth. As a result, IBISWorld expects industry revenue to grow at an annualized rate of 5.0% to $7.7 billion over the five years to 2017. However, the average vehicle age in Florida in 2016 was 10.5 ye...purchase to read more.

    Additional Insights for the Used Car Dealers in Florida Industry

    IBISWorld identifies 250 Key Success Factors for a business.The most important for the Used Car Dealers in Florida 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 Florida and Price of new cars in the Used Car Dealers in Florida industry impact industry performance..

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    What's in this report

    What is the Used Car Dealers in Florida Industry?

    This industry consists of establishments that sell used passenger vehicles, including passenger cars, light trucks, sport utility vehicles (SUVs) and passenger vans. Used car dealers also provide financing and insurance services. New car dealers that also sell used vehicles are not included in this industry.

    Industry Products
  • Used vehicles
  • Services and parts
  • Financing
  • 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 Florida
  • Price of new cars
  • Average age of vehicle fleet
  • Per Capita Debt in Florida
  • 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 Florida Industry Revenue Outlook

  • Industry Life Cycle
  • Life cycle reasons
  • Chart: Benchmarking - Used Car Dealers in Florida 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
  • Financing
  • Other
  • Chart: Used Car Dealers in Florida 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 Florida 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 Florida

  • Basis of Competition
  • Internal
  • External

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

  • CarMax Business Services LLC, Enterprise Holdings Inc., Morgan Auto Group, Off Lease Only,
  • Table: CarMax Business Services LLC - financial performance
  • Table: Enterprise Holdings Inc. - financial performance
  • Table: Morgan Auto Group - financial performance
  • Table: Off Lease Only - financial performance

  • Capital Intensity
  • Chart: Level of Capital Intensity for the Used 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 Used Car Dealers in Florida Industry
    Includes:
  • Industry Revenue (2008-2022)
  • Establishments (2008-2022)
  • Businesses (2008-2022)
  • Employment (2008-2022)
  • Wages (2008-2022)
  • Per Capita Disposable Income (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?

    The Used Car Dealers in Florida Industry Research Report measures market size, analyses current and future trends, and provides an indication of market share for the industry’s largest companies. IBISWorld’s collection of industry market research reports gives you insightful, up-to-date information on the supply chains, economic drivers, and key buyers and markets for hundreds of industries.

    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 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 Used 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 Used 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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