Industry Analysis & Industry Trends
The Used Car Dealers industry has since shifted gears since the economic downturn and has taken off at full speed. as economic conditions improved and consumer spending began to rise again, consumers released pent-up demand for big-ticket purchases, such as automobiles. Moreover, consumers, still wary of the economic climate, increasingly opted to purchase used vehicles over new ones, helping to boost sales.These trends are expected to continue in the five years to 2020, bolstering demand. Additionally, acquisition activity is expected to remain prominent over the five-year period, as industry operators vie for a greater share of the market... purchase to read more
Industry Report - Starting a New Business Chapter
Barriers to entry in the Used Car Dealers industry are moderate. Barriers include high competition levels and start-up costs. The industry is highly fragmented, with no company holding a significant market share of more than 5.0%. This low concentration leads to high competition that is often based on price and can make it difficult for new entrants to generate a high profit margin.
Dealers entering the industry face significant capital costs; industry operators must make large, up-front investments in inventory purchases and dealership lots. New entrants also need to be aware of the appropriate value and demand for used vehicles to avoid holding obsolete inventory... purchase to read more