Green light: The industry is poised for solid growth as consumer spending continues to rise

The Online Car Dealers industry retails automobiles to consumers and businesses and provides related services including auto loan financing and vehicle trade-in and car-selling services. Included in this industry are online-only dealers and brick-and-mortar dealers that offer online purchasing and online aid. Improving economic conditions and higher car sales have resulted in overall positive growth since 2012. Disposable income growth has enabled consumers to return to making big-ticket purchases over the past five years. As a result, industry revenue is expected to increase. In the five years to 2022, industry growth is expected to continue increasing at a strong rate...purchase to read more.

Industry Statistics & Market Size
Revenue
$46bn
Annual Growth 12-17
14.9%
Forecast Growth 17-22
Profit
Employment
29,928
Businesses
696
Market Share of Companies
There are no companies with a dominant market share in this industry

Industry Threats & Opportunities

  • Strong vehicle sales will widen industry profit margins and contribute to revenue growth
  • Online retailers can usually offer lower, no-haggle prices and flexible financing
  • The industry is anticipated to benefit from solid economic growth
  • Industry Report - Industry Products Chapter

    Online car dealers sell new and used vehicles and provide parts, repair services, financing and insurance. Consumers are driving their vehicles longer and choosing used vehicles over new ones, fueling growth in the maintenance-oriented parts and services segment.New vehicle salesNew vehicle sales are expected to account for 56.3% of industry revenue. Demand for new vehicles has increased in the past five years as consumer spending and disposable income have improved. Moreover, as new models are released and vehicles become more environmentally friendly and automated, demand for new vehicles is expected to rise. However, moving forward, interest rates are expected to rise and access to credit is anticipated to decline, hampering demand for this segment...purchase to read more.

    Additional Insights for the Online Car Dealers Industry

    IBISWorld identifies 250 Key Success Factors for a business.The most important for the Online Car Dealers Industry are

  • Ability to quickly adopt new technology
  • Provision of superior after sales service
  • Ability to control stock on hand
  • IBISWorld analysts also discuss how external factors such as Consumer Confidence Index and Average age of vehicle fleet in the Online Car Dealers industry impact industry performance..

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    What's in this report

    What is the Online Car Dealers Industry?

    This industry retails automobiles online to consumers and businesses and provides services to aid in the purchase of automobiles. Automobiles include passenger cars, trucks and sports utility vehicles (SUVs). Some players offer their customers trade-in, car financing and car selling services. This industry does not include classified websites that feature reviews, guides, photos and advertisements of new and used vehicles for sale.

    Industry Products
  • New vehicle sales
  • Used vehicle sales
  • Parts and repair services
  • Financing and insurance
  • Industry Activities
  • Selling new and used cars online
  • Selling new and used trucks online
  • Providing vehicle maintenance and repair services
  • Providing vehicle financing
  • Providing car-selling services
  • 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
  • External competition
  • Aggregate household debt
  • Regulation for the Automotive sector
  • Number of broadband connections

  • Current Performance
  • Industry demand
  • Strong performance
  • New products
  • Chart: Revenue Growth

  • Industry Outlook
  • Stable growth ahead
  • Future challenges
  • Table: Online Car Dealers Industry Revenue Outlook

  • Industry Life Cycle
  • Life cycle reasons
  • Chart: Benchmarking - Online Car Dealers Industry Lifecycle vs The Economy

  • Supply Chains
    Key Buying Industries
  • Used Car Dealers
  • Car Rental
  • Consumers

  • Key Selling Industries
  • Auto Mechanics
  • Auto Parts Stores
  • Automobile Wholesaling
  • Car & Automobile Manufacturing
  • Car Body Shops
  • SUV & Light Truck Manufacturing

  • Products & Services
  • New vehicle sales
  • Used vehicle sales
  • Parts and repair services
  • Financing and insurance
  • Chart: Online Car Dealers Industry Products and Services Segmentation

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

  • International Trade
    Business Locations
    Chart: Business Locations by State
    Market Share Concentration
    Key Success Factors
    Cost Structure Benchmarks
  • Profit
  • Purchases
  • Wages
  • Other costs
  • Chart: Cost Structure Benchmarking – Sector vs Online Car Dealers

  • Basis of Competition
  • Internal competition
  • External competition

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

  • Industry Globalization
    There are no major players in this industry. This report includes analysis of other companies.
    Capital Intensity
  • Chart: Level of Capital Intensity for the Online 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 Online 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)
  • Consumer confidence index (2008-2022)

  • Table: Annual Percentage Change for Key Industry Data
    Table: Key Ratios for Industry Key Data
    Deal-Of-The-Day Website
  • A website that offers a product for sale for a short period (typically 24 to 48 hours). Customers register as members of the website and receive offers via email or social networks.
  • Haggle
  • The process by which potential buyers and sellers of a product, such as a car, negotiate over the price in an attempt to get the lowest or highest price possible.
  • Lemon Laws
  • Consumer protection laws that pertain to automobile warranties and the manufacturer's responsibility for repairing defects within the warrant period.
  • What Our Customers Say

    Why buy this report?

    IBISWorld’s industry research report on Online Car Dealers contains five-year forecasts and data analysis that can help you identify and mitigate risks in potential new markets. Position yourself as an expert with internal stakeholders by using our comprehensive industry research to inform your reports, proposals and presentations. Our business information will save you money by helping you make better decisions, faster.

    IBISWorld industry market research reports enable you to:
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    • Identify threats and opportunities
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    This report on Online 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 Online 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 Online 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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