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 SWOT Analysis Chapter
The Used Car Dealers industry is mature, and, relative to other automotive industries, has been fairly recession-resistant. Although used car dealers faced sharp revenue declines in 2009, the drops were modest in comparison with new car dealers. Over the 10 years to 2019, industry value added, a measure of the industry's contribution to the economy, is expected to grow at an average annual rate of 2.7%. Similarly, GDP is expected to grow 2.7% 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. Nonemploying establishments are estimated to generate about 15.2% of industry revenue in 2014... purchase to read more