Good as new: Increases in per capita disposable income is forecast to buoy industry growth

Over the five years to 2018, Used Car Dealers industry revenue is expected to grow, as rises in disposable income and easier access to credit enabled more consumers to afford industry products. Moreover, as economic conditions were generally favorable over the past five years, industry operators searched out new opportunities to generate higher returns. Over the five years to 2023, the industry is expected to continue growing, albeit at a subdued rate. Increases in per capita disposable income and consumer spending are forecast to buoy industry growth over the next five years; however, anticipated increases in overall household debt are expected to deter consumers from flocking to industry establishments as they did during the previous five-year period...purchase to read more.

Industry Statistics & Market Size
Revenue
$131bn
Annual Growth 13-18
4.6%
Forecast Growth 18-23
Profit
Employment
271,908
Businesses
145,364
Market Share of Companies

Industry Threats & Opportunities

  • Consumer confidence is forecast to decrease, forcing industry operators to establish new methods of attracting consumers
  • Mobile apps have also increased competition among industry operators
  • The US unemployment rate is expected to increase slightly over the next five years
  • Industry Report - Industry Products Chapter

    The Used Car Dealers industry generates revenue by selling used vehicles and providing vehicle parts and services. Financing and insurance services, which are directly tied to used vehicle sales, also generate a significant share of industry revenue. Used car dealers directly compete with the Auto Mechanics (IBISWorld report 81111) and New Car Dealers (44111) industries for maintenance work. The parts and services segment is gaining importance in all three industries, which will intensify competition.Used car dealers frequently operate in under-supplied niches of these markets, in particular, catering to individuals with poor access to credit. Thi...purchase to read more.

    Additional Insights for the Used Car Dealers Industry

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

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    What's in this report

    What is the Used Car Dealers 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 cars
  • Used vans, minivans, trucks and buses
  • Parts and repair services
  • Financing 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
  • Price of new cars
  • Aggregate household debt
  • Average age of vehicle fleet
  • World price of crude oil

  • Current Performance
  • Continued improvements
  • Shifting gears
  • Technological advantages
  • Increasing wholesale power
  • Chart: Revenue Growth

  • Industry Outlook
  • Improved economic conditions
  • Preparing for success
  • Looming intervention
  • Table: Used Car Dealers Industry Revenue Outlook

  • Industry Life Cycle
  • Life cycle reasons
  • Chart: Benchmarking - Used Car Dealers 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 cars
  • Used vans, minivans, trucks and buses
  • Other
  • Parts and repair services
  • Financing and insurance
  • Chart: Used 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 Used Car Dealers Industry

  • International Trade
    Business Locations
    Chart: Business Locations by State
    Market Share Concentration
    Key Success Factors
    Cost Structure Benchmarks
  • Profit
  • Purchases
  • Wages
  • Rent, utilities and marketing
  • Chart: Cost Structure Benchmarking – Sector vs Used Car Dealers

  • Basis of Competition
  • Internal
  • External

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

  • Industry Globalization
    CarMax Inc.,
  • Table: CarMax Inc. - financial performance

  • Capital Intensity
  • Chart: Level of Capital Intensity for the Used 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 Used Car Dealers Industry
    Includes:
  • Industry Revenue (2009-2023)
  • Industry Gross Product (2009-2023)
  • Establishments (2009-2023)
  • Businesses (2009-2023)
  • Employment (2009-2023)
  • Wages (2009-2023)
  • Per Capita Disposable Income (2009-2023)

  • Table: Annual Percentage Change for Key Industry Data
    Table: Key Ratios for Industry Key Data
    Table: Industry Financial Ratios
    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 their 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 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.

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    This report on Used 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 Used 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

    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, you can expect thoroughly researched, reliable and current information that will help you to make faster, better business decisions.

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