Fast lane: Rising consumer confidence and new vehicle introductions will drive growth

The New Car Dealers industry is set to expand over the five years to 2017. The industry is highly cyclical in nature and therefore is vulnerable to economic shifts such as fluctuations in employment, overall consumer spending and financing rates. As a result, the industry has benefited as economic conditions gradually improved during the period, particularly for consumers. With increased discretionary spending and elevated confidence, consumers are expected to continue pursuing big-ticket items, including new vehicles. Over the five years to 2022, rising disposable income is expected to drive demand for cars and trucks. Additionally, the introduction of new energy-efficient vehicle models will boost sales as consumers move away from gas-guzzling vehicles...purchase to read more.

Industry Statistics & Market Size
Revenue
$905bn
Annual Growth 12-17
4.5%
Forecast Growth 17-22
Profit
Employment
1.2m
Businesses
21,430
Market Share of Companies

Industry Threats & Opportunities

  • Over the next five years, rising disposable income is expected to drive demand for cars and trucks
  • New car dealers are collaborating with online outlets to increase traffic to their dealerships
  • Rising income and new vehicle introductions will drive consumer traffic to car dealers
  • Industry Report - Industry Analysis Chapter

    The New Car Dealers industry has trended upward over the five years to 2017. Per capita disposable income and consumer confidence have risen, encouraging consumers to increase demand for new vehicles. Additionally, lower interest rates have given individuals more of an incentive to purchase new vehicles. When interest rates are low, the cost to finance vehicles is more affordable and therefore more desirable. Moreover, low interest rates improve profitability for industry operators as floor plan financing, or the cost to finance new vehicle inventory, becomes less costly. As a result of these trends, new car sales are expected to continue growing, leading to industry growth. Industry revenue is expected to grow at an annualized rate of 4.5% to $904.7 bi...purchase to read more.

    Additional Insights for the New Car Dealers Industry

    IBISWorld identifies 250 Key Success Factors for a business.The most important for the New Car Dealers 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 Consumer Confidence Index and Average age of vehicle fleet in the New Car Dealers industry impact industry performance..

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    What's in this report

    What is the New Car Dealers 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
  • Finance and insurance
  • 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
  • Consumer Confidence Index
  • Average age of vehicle fleet
  • Yield on 10-year Treasury note
  • Per capita disposable income
  • Regulation for the Automotive sector

  • Current Performance
  • Rising internal competition
  • All-new model
  • Vehicle platforms
  • Chart: Revenue Growth

  • Industry Outlook
  • Changes around the corner
  • New rides
  • New entrants despite acquisition activity
  • Table: New Car Dealers Industry Revenue Outlook

  • Industry Life Cycle
  • Life cycle reasons
  • Chart: Benchmarking - New Car Dealers 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
  • Finance and insurance
  • Chart: New Car Dealers Industry Products and Services Segmentation

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

  • International Trade
    Business Locations
    Chart: Business Locations by State
    Market Share Concentration
    Key Success Factors
    Cost Structure Benchmarks
    ProfitPurchasesWagesMarketing and advertising
  • Chart: Cost Structure Benchmarking – Sector vs New Car Dealers

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

  • Industry Globalization
    AutoNation Inc., Penske Automotive Group Inc.,
  • Table: AutoNation Inc. - financial performance
  • Table: Penske Automotive Group Inc. - financial performance

  • Capital Intensity
  • Chart: Level of Capital Intensity for the New Car Dealers 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 Industry
    Includes:
  • Industry Revenue (2008-2022)
  • Industry Gross Product (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
    Table: Industry Financial Ratios
    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

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    This report on New Car Dealers:
    • 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 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

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