Industry Analysis & Industry Trends
Like most automotive industries, the Used Car Dealers industry felt the impact of the recession and the dramatic slowdown in consumer spending. However, the industry has been somewhat recession-resistant due to its in-house financing arrangements. Growth in the next five years will be moderate as used car dealers will face increased competition from new car dealers. The adoption of lease here, buy here financing options will help used car dealers stay competitive and increase profitability, but the effects of new legislation on financing practices will remain uncertain... purchase to read more
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 Dealer (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... purchase to read more