Industry Analysis & Industry Trends
As a result of the recession that began in late 2008, consumers facing unemployment and limited disposable income avoided large discretionary purchases, such as cars. Beginning in 2010, however, the economy began to improve and consumer spending began to rise. Rising demand for used vehicles, particularly for those five years and older, will likely lead growth in the next five years. Nonetheless, many firms are expected to forgo significant expansion of their operations. Rather than expanding into new markets with new locations, dealers will instead prefer to increase inventory at their existing retail outlets, hoping to leverage higher sales from an existing customer base... purchase to read more
Industry Report - Industry SWOT Analysis Chapter
The Used Car Dealers industry is in the mature phase of its life cycle. Industry value added (IVA), a measure of the industry's contribution to the overall economy, is forecast to grow at an average annual rate of 1.5% over the 10 years to 2019. By contrast, GDP is projected to expand at an average annual rate of 2.4% over the same period. Because IVA is expected to grow at a slower rate than the overall economy, this is an indication that the Used Car Dealers industry is in the mature stage of its life cycle.
The industry's clearly segmented product groups and user industries also indicate a mature life cycle stage. Moreover, the number of used car dealerships has remained relatively stable... purchase to read more