Industry Analysis & Industry Trends
Alongside other automotive industries, used car dealers have benefited from a period of recovery in recent years. Although revenue struggled over the four years through 2011-12, this final year marked a turning point for operators, as economic conditions started to improve and consumers that had previously delayed vehicle purchases returned to the market. As disposable incomes and business profit levels have risen, customers have chosen to replace vehicles more often, stimulating higher sales of used cars. Overall, industry revenue is expected to grow at a compound annual rate of 5.6% over the five years through 2016-17 to reach £16.3 billion, including forecast growth of 3.4% in the current year.
Despite recent growth, the industry has encountered several challenges... purchase to read more
Industry Report - Industry Analysis Chapter
The Used Car and Light Motor Vehicle Dealers industry has bounced back strongly in recent years. Prior to the start of the period, dismal consumer confidence levels and rising unemployment meant that many consumers could not afford to purchase even a used car and industry revenue therefore declined significantly. However, demand rebounded over the following years as economic conditions began to pick up, encouraging consumers who had previously postponed buying a car to return to the market. Overall, industry revenue is expected to grow at a compound annual rate of 5.6% over the five years through 2016-17 to total £16.3 billion. As a result, retailers are continuing to expand and develop their operations as sales rise, primarily through online shopping platforms.
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