Industry Threats & Opportunities
- Positive economic factors, particularly at the consumer level, will boost industry revenue
- Used car dealers are looking to broaden in-house financing
- Consumers with stable employment and income will be more willing and able to purchase vehicles... purchase to read more
Industry Analysis & Industry Trends
In the five years to 2016, revenue for the Used Car Dealers industry is expected to trend higher, albeit off a low recessionary base. Because the industry relies strongly on consumers to drive revenue growth, fluctuations in disposable income dictate the direction of the industry. In the coming years, rising disposable income levels are anticipated to increase the likelihood an individual purchases a big-ticket item, such as a used automobile... ... purchase to read more
Industry Report - Industry SWOT Analysis Chapter
The Used Car Dealers industry is mature and, relative to other automotive industries, is fairly resistant to economic downturns. Over the 10 years to 2022, industry value added, a measure of the industry's contribution to the economy, is expected to grow at an average annual rate of 4.0%. By contrast, GDP is expected to grow 2.0% over the same period.
The number of used car dealerships is highly stable. Moreover, the industry has minimal barriers to entry, allowing individuals or nonemployers to participate. The Used Car Dealers industry generally suffers from a poor public image as a result of the industry's emphasis on high-margin sales techniques. Companies not following this trend, such as CarMax, are rapidly gaining market share over traditional dealerships.
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Additional Insights for the
Used Car Dealers
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... purchase to read more