Industry Analysis & Industry Trends
The Used Car Dealers industry has shifted gears since the economic downturn and has taken off at full speed. During the recovery, relatively high unemployment and limited disposable income caused consumers to cut back on discretionary purchases, such as cars. However, as economic conditions improved and consumer spending began to rise again, consumers released pent-up demand for big-ticket purchases, such as automobiles. In the coming years, rising demand for used vehicles, particularly for those five years and older, will foster industry growth... 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 just one 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 encounter 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