Industry Analysis & Industry Trends
Over the five-year period, revenue for the New Car Dealers industry is expected to increase, bolstered by rising consumer confidence and disposable income. Rising disposable income encourages consumers to make big-ticket discretionary purchases such as new vehicles. In the coming years, new fuel-efficient models, in conjunction with stable consumer confidence, are anticipated to support industry demand. Additionally, improving economic conditions will boost employment and disposable income levels, which will enable consumers to purchase big-ticket items... purchase to read more
Industry Report - Industry Products Chapter
In 2016, new vehicle sales are estimated to generate 57.6% 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