Fast lane: Rising interest rates and decreased consumer confidence will temper growth slightly

The New Car Dealers industry in Illinois has experienced strong growth over the five years to 2017. Rising consumer sentiment underpinned by historically low interest rates and increasing per capita disposable income have largely fueled revenue gains. A steadily aging vehicle fleet has also fostered demand and revenue growth. Over the five years to 2022, industry revenue is forecast to continue climbing. Higher income levels and an aging vehicle fleet will continue to provide incentive for consumers to purchase both new and used vehicles. Nonetheless, rising interest rates and a dip in overall consumer confidence will ultimately lead to a moderate deceleration in revenue growth...read more.

Industry Statistics & Market Size
Revenue
$35bn
Annual Growth 12-17
4.1%
Forecast Growth 17-22
Profit
Employment
43,498
Businesses
887

Industry Threats & Opportunities

  • Higher income levels and an aging vehicle fleet will drive demand
  • A gradually aging vehicle fleet has also contributed to demand and revenue growth
  • Per capital disposable income in Illinois is forecast to increase at a stronger rate over the next five years
  • Industry Report - Industry Key Buyers Chapter

    Market share concentration in this industry is low, with no industry operator accounting for more than 5.0% of industry revenue. This low level of concentration indicates a highly fragmented industry in which companies compete heavily through price, inventory selection and advertising. Low market share concentration is supported in part by the need for large and expensive inventory (i.e. automobiles), which are difficult and expensive to ship. This reality creates a road block to economies of scale. Over the five years to 2017, market share concentration has remained relatively stable...purchase to read more.

    Additional Insights for the New Car Dealers in Illinois Industry

    IBISWorld identifies 250 Key Success Factors for a business.The most important for the New Car Dealers in Illinois 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 Illinois in the New Car Dealers in Illinois industry impact industry performance..

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    What's in this report

    What is the New Car Dealers in Illinois 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 repair services
  • Industry Activities
  • Selling new cars
  • Selling new light trucks
  • Selling used cars
  • Selling used light trucks
  • Providing vehicle maintenance and repairs
  • 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 Illinois
  • Consumer Confidence Index
  • Yield on 10-year Treasury note

  • Current Performance
  • Demand drives growth
  • Consolidation and cost cutting
  • Chart: Revenue Growth

  • Industry Outlook
  • Demand softens slightly
  • Profit and demand support stabilization
  • Table: New Car Dealers in Illinois Industry Revenue Outlook

  • Industry Life Cycle
  • Life cycle reasons
  • Chart: Benchmarking - New Car Dealers in Illinois 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 repair services
  • Other
  • Chart: New Car Dealers in Illinois 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 Illinois 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 Illinois

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

  • Bob Loquercio Auto Group, Continental Motors Group, Green Family Stores Inc., Napleton Automotive Group,
  • Table: Bob Loquercio Auto Group - financial performance
  • Table: Continental Motors Group - financial performance
  • Table: Green Family Stores Inc. - financial performance
  • Table: Napleton Automotive Group - financial performance

  • Capital Intensity
  • Chart: Level of Capital Intensity for the New Car Dealers in Illinois 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 Illinois Industry
    Includes:
  • Industry Revenue (2008-2022)
  • Establishments (2008-2022)
  • Businesses (2008-2022)
  • Employment (2008-2022)
  • Wages (2008-2022)
  • Consumer Confidence Index (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
  • A vehicle's engine and transmission combination.
  • 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.
  • What Our Customers Say

    Why buy this report?

    IBISWorld’s New Car Dealers in Illinois Industry Research Report contains up-to-date data and analysis, allowing you to identify the strengths and potential weaknesses of major companies in the industry. Build your credibility with clients and prospects by sharing insights into the current and emerging trends driving their industry. Our market research gives you the tools to win new business and keep existing clients.

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

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