Steering into trouble: Longer replacement cycles and falling car usage limited revenue

Operators in the industry sell used cars and other light motor vehicles. The industry has recorded a mixed performance over the past five years. Strong consumer confidence at the start of the period and rising business profit levels encouraged customers to replace vehicles more often, stimulating higher sales for used cars. The industry has since come under pressure, causing revenue to decline in the second half of the period. Overall, industry revenue is expected to increase at a compound annual rate of 0.9% over the five years through 2019-20 to reach £16.9 billion. In the current year, subdued economic conditions have affected sales of discretionary items, including used cars. As a result, industry revenue is expected to decrease by 1.5% in the current more.

Industry Statistics & Market Size
Annual Growth 15-20
Forecast Growth 20-25

Industry Threats & Opportunities

  • Despite strong growth at the start of the period, the industry has encountered challenges
  • AFVs have become more popular as environmental awaress has increased
  • Low new car sales could affect the supply of used vehicles in the coming years
  • Industry Report - Industry Products Chapter

    In 2018, just under 8 million vehicles were traded in the United Kingdom according to the SMMT, through dealerships, private sales and auctions. In the first three months of 2019, just over 2 million vehicles were traded, down 2.1% compared with the same period in 2018.Only vehicles sold through dealerships and auction houses are included in the industry. Although significant, neither private-to-private nor business-to-business sales count towards industry revenue. Cars sold through private sales are typically much cheaper and older than those sold through dealerships.Trends in used car sales typically lag behind trends in new car sales. Over 65% of used cars sold are petrol cars, as older cars are more likely to run on petrol. The...purchase to read more.

    Additional Insights for the Used Car & Light Motor Vehicle Dealers Industry

    IBISWorld identifies 250 Key Success Factors for a business.The most important for the Used Car & Light Motor Vehicle Dealers Industry are

  • Having a good reputation
  • Proximity to key markets
  • Having a wide and expanding product range
  • IBISWorld analysts also discuss how external factors such as Consumer confidence index and Real household disposable income in the Used Car & Light Motor Vehicle Dealers industry impact industry performance..

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    What's in this report

    What is the Used Car & Light Motor Vehicle Dealers Industry?

    Dealers and auctioneers in this industry sell used cars and other light motor vehicles. Vehicles sold include passenger cars, SUVs, jeeps and any other vehicles weighing less than 3.5 tonnes, including ambulances and minibuses. The sale of new vehicles and private-to-private and business-to-business sales are excluded from the industry.

    Industry Products
  • Four-wheel drives
  • Mini and supermini cars
  • Lower medium cars
  • Upper medium cars
  • Luxury and sports cars
  • Multipurpose vehicles
  • Light commercial vehicles
  • Other vehicles
  • Industry Activities
  • Selling used cars
  • Selling used light motor vehicles
  • Table of Contents

    Industry Definition
    Main Activities
    Similar Industries
    Additional Resources
    Industry Statistics Snapshot
    Industry Structure
    Executive Summary
    Executive Summary
    Key External Drivers
  • Consumer confidence index
  • Real household disposable income
  • New car prices
  • Fuel prices

  • Current Performance
  • Bumps in the road
  • Fuelling change
  • Navigating success
  • Industry profitability
  • Chart: Revenue Growth

  • Industry Outlook
  • Driving sales
  • Stalling performance
  • Supply and product mix
  • Table: Used Car & Light Motor Vehicle Dealers Industry Revenue Outlook

  • Industry Life Cycle
  • Life cycle reasons
  • Chart: Benchmarking - Used Car & Light Motor Vehicle Dealers Industry Lifecycle vs The Economy

  • Supply Chains
    Key Buying Industries
  • Consumers

  • Key Selling Industries
  • Consumers
  • General Public Administration Activities
  • New Car & Light Motor Vehicle Dealers

  • Products & Services
  • Mini and supermini cars
  • Lower medium cars
  • Upper medium cars
  • Light commercial vehicles
  • Four-wheel drives
  • Other vehicles
  • Multipurpose vehicles
  • Luxury and sports cars
  • Chart: Used Car & Light Motor Vehicle Dealers Industry Products and Services Segmentation

  • Demand Determinants
    Major Markets
  • Private buyers aged between 35 and 54 years
  • Private buyers aged between 17 and 34 years
  • Private buyers aged over 55
  • Commercial market
  • Chart: Major Market Segmentation for the Used Car & Light Motor Vehicle Dealers Industry

  • International Trade
    Business Locations
    Chart: Business Locations by State
    Market Share Concentration
    Key Success Factors
    Cost Structure Benchmarks
  • Chart: Cost Structure Benchmarking – Sector vs Used Car & Light Motor Vehicle Dealers

  • Basis of Competition
    Internal competitionExternal competition
    Barriers to Entry
  • Table: Barrier to Entry Checklist for the Used Car & Light Motor Vehicle Dealers Industry

  • Industry Globalization
    Lookers plc, Pendragon plc, Arnold Clark Automobiles Ltd, Sytner Group Ltd,
  • Table: Lookers plc - financial performance
  • Table: Pendragon plc - financial performance
  • Table: Arnold Clark Automobiles Ltd - financial performance
  • Table: Sytner Group Ltd - financial performance

  • Capital Intensity
  • Chart: Level of Capital Intensity for the Used Car & Light Motor Vehicle Dealers Industry
  • Chart: Tools of the Trade: Growth Strategies for Success

  • Technology & Systems
    Revenue Volatility
  • Chart: Volatility vs Industry Growth

  • Regulation & Policy
    Industry Assistance
    Table: Industry Data for the Used Car & Light Motor Vehicle Dealers Industry
  • Industry Revenue (2011-2025)
  • Industry Gross Product (2011-2025)
  • Establishments (2011-2025)
  • Businesses (2011-2025)
  • Employment (2011-2025)
  • Wages (2011-2025)
  • Wages (2011-2025)
  • Purchases (2011-2025)
  • Profit (2011-2025)
  • Depreciation (2011-2025)
  • Marketing (2011-2025)
  • Rent (2011-2025)
  • Utilities (2011-2025)
  • Other (2011-2025)

  • Table: Annual Percentage Change for Key Industry Data
    Table: Key Ratios for Industry Key Data
  • Alternative-fuel vehicles run on alternative power sources or combinations, such as petrol-electric, petrol-alcohol, electric only and petrol-gas.
  • Light Motor Vehicle
  • On- or off-road motor vehicles weighing up to 3.5 tonnes. Some minivans are included in this category.
  • Pre-Registered Cars
  • The process of dealers registering cars to themselves to meet sales targets set by the car manufacturer before selling them on to consumers.
  • Suv
  • Sports utility vehicles are light motor vehicles that often have four-wheel drive capability.
  • What Our Customers Say

    Why buy this report?

    IBISWorld’s Used Car & Light Motor Vehicle Dealers market research report can be used to help you: understand market size and growth potential; major companies; draft business plans and pitch books; and conduct benchmarking and SWOT analysis. Our industry analysis highlights macro industry trends in the overall sector and micro trends faced by companies that do business in the industry. The industry report also provides key industry statistics and 5-year forecasts to anticipate future industry prospects so you can decide with confidence.

    IBISWorld industry market research reports enable you to:
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    This report on Used Car & Light Motor Vehicle Dealers:
    • Provides Market Size information to assist with planning and strategic decisions.
    • Includes the necessary information to perform SWOT, PEST and STEER analysis.
    • Helps you understand market dynamics to give you a deeper understanding industry competition and the supply chain.
    • Analyses key performance and operational metrics so that you can benchmark against your own business, that of your customers’ businesses, or your competitors’ businesses.
    The Used Car & Light Motor Vehicle Dealers market research report includes:
    • Historical data and analysis for the key drivers of this industry
    • A five-year forecast of the market and noted trends
    • Detailed research and segmentation for the main products and markets
    • An assessment of the competitive landscape and market shares for major companies
    • And of course, much more

    IBISWorld reports on thousands of industries around the world. Our clients rely on our information and data to stay up-to-date on industry trends across all industries. With this IBISWorld Industry Research Report on Used Car & Light Motor Vehicle Dealers, you can expect thoroughly researched, reliable and current information that will help you to make faster, better business decisions.

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