Industry Analysis & Industry Trends
Over the five years to 2015, improving economic conditions has contributed to revenue growth for New Car Dealers in Canada industry. Bolstered by rising consumer confidence and disposable income after the recession, consumers who held off on new car purchases are expected to contribute to industry revenue over the period. Over the five years to 2020, the industry expected to benefit from a slew of new vehicle models, with fuel-efficient vehicles particularly becoming a driver of demand as fuel prices rise and consumers look to purchase vehicles with a higher miles per gallon rate... purchase to read more
Industry Report - Industry Products Chapter
In 2015, new vehicle sales are estimated to generate 60.9% of industry revenue. As disposable income continues to trend higher, consumers will be more apt to purchase new vehicles, increasing this segment's share of revenue. This segment is also expected to benefit from new vehicle models that incorporate the latest technology and easing credit terms.
New car dealers buy used vehicles through auctions and customer trade-ins, selling them at higher margins than new vehicles. Even so, used vehicles offer a compelling value alternative to shoppers. According to Manheim, consumers are willing to pay more for vehicles with higher mileage. For example, in 2010, a vehicle with 58,500 miles would sell for about $9,500... purchase to read more