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

The New Car Dealers industry in Texas 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 have gradually improved over the period, particularly for consumers. With increased per capita disposable income and consumer spending, consumers are expected to continue pursuing big-ticket items, including new vehicles. Low interest rates have also spurred demand for new vehicles over the past five years. When interest rates are low, financing a vehicle is more affordable and therefore, more desirable. However, in recent months, interest rates increased...purchase to read more.

Industry Statistics & Market Size
Annual Growth 12-17
Forecast Growth 17-22

Industry Threats & Opportunities

  • While higher interest rates may hamper future demand for new vehicles, increased access to credit may help offset that trend
  • The faster dealerships sell their inventory, the lower interest they have to pay
  • Sales of used vehicles will experience an increase in demand over the next five years
  • Industry Report - Industry Products Chapter

    New vehiclesIn 2017, new vehicle sales are estimated to generate 55.3% of industry revenue. New car dealers continue to benefit from attractive new models and easing credit terms. Moreover, this segment has benefited from lower used-vehicle supply levels. Due to low supply levels, prices for used vehicles skyrocketed over the past five years. As a result, the price discrepancy from used cars to new cars decreased, prompting consumers to opt for new vehicles, including sport-utility vehicles, vans, trucks, small cars and luxury vehicles. According to WardsAuto, 60.2% of vehicle registrations in Texas were trucks or busses in 2016, with pickup truck registrations accounting for about 40.0% of that segment and 23.0% of overall Texas vehicle registrations. How...purchase to read more.

    Additional Insights for the New Car Dealers in Texas Industry

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

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    What's in this report

    What is the New Car Dealers in Texas Industry?

    Operators in this industry sell 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 Spending in Texas
  • Average age of vehicle fleet
  • Per capita disposable income in Texas
  • Regulation for the Automotive sector
  • Yield on 10-year Treasury note

  • 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 in Texas Industry Revenue Outlook

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

  • Major Markets
  • Prime customers
  • Super-prime customers
  • Nonprime customers
  • Subprime and deep subprime customers
  • Chart: Major Market Segmentation for the New Car Dealers in Texas Industry

  • Business Locations
    Chart: Business Locations by State
    Market Share Concentration
    Key Success Factors
    Cost Structure Benchmarks
  • Chart: Cost Structure Benchmarking – Sector vs New Car Dealers in Texas

  • Basis of Competition
  • Internal competition
  • External competition

  • Barriers to Entry
  • Table: Barrier to Entry Checklist for the New Car Dealers in Texas Industry

  • AutoNation Inc., Group 1 Automotive Inc., MAC HAIK Automotive Group, RFJ Auto Partners Holdings, RML Automotive,
  • Table: AutoNation Inc. - financial performance
  • Table: Group 1 Automotive Inc. - financial performance
  • Table: MAC HAIK Automotive Group - financial performance
  • Table: RFJ Auto Partners Holdings - financial performance
  • Table: RML Automotive - financial performance

  • Capital Intensity
  • Chart: Level of Capital Intensity for the New Car Dealers in Texas 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 Texas Industry
  • 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
  • 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.
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    Why buy this report?

    IBISWorld’s industry research report on New Car Dealers in Texas provides up-to-date sales and market data, allowing you to identify the product and customer segments driving revenue growth. The report identifies the leading companies in the industry, and offers strategic analysis of the key factors influencing the market. Our data forecasts are accompanied by full analysis to illustrate how the market is responding to dominant and emerging trends.

    IBISWorld industry market research reports enable you to:
    • Find out about key industry trends
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    This report on New Car Dealers in Texas:
    • 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 Texas 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 Texas, you can expect thoroughly researched, reliable and current information that will help you to make faster, better business decisions.

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