Sharp downshift: The industry's rapid growth is expected to slow over the current year

The industry has recorded relatively strong revenue growth over the past five years, supported by an overall increase in disposable income, although this has come under pressure more recently, resulting in weaker growth. Strong consumer confidence and rising business profit levels encouraged customers to replace vehicles more often, stimulating higher sales for used cars. Industry revenue is expected to grow at a compound annual rate of 4.9% over the five years through 2018-19 to reach £18.8 billion. In the current year, subdued economic conditions have affected sales of discretionary items, including used cars. As a result, revenue growth is expected to be lower than in previous years, at 0.7%.Despite overall growth, the industry has encountered several challenges...read more.

Industry Statistics & Market Size
Revenue
£18.8bn
Annual Growth 14-19
4.9%
Forecast Growth 19-24
Profit
Employment
38,969
Businesses
13,154

Industry Threats & Opportunities

  • Weaker disposable income and low confidence has applied the brakes to the industry’s growth
  • Online marketplaces have affected how consumers search for cars and placed pressure on industry prices
  • Potential trade barriers and declining usage could weigh on the industry over the coming years
  • Industry Report - Industry Locations Chapter

    The South EastThe South East has the highest proportion of industry establishments, accounting for 15.7%. The South East is also a high-income earning region and has a very high level of car ownership. The region’s proximity to London is also a factor, despite the level of car ownership being low in the capital. Those that do own cars in London will usually travel to neighbouring regions to purchase a car, as they often have larger ranges and more space. Given the high average income in the region, used car buyers in the South East are more likely to purchase near-new vehicles, sports cars and other high-end vehicles. The region also has a high share of UK population which attracts industry operators. According to SMMT data, 1.2 mi...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
  • Bump 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
    ProfitPurchasesWagesDepreciation and other costs
  • 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
    Pendragon plc, Lookers plc, Arnold Clark Automobiles Ltd, Sytner Group Ltd,
  • Table: Pendragon plc - financial performance
  • Table: Lookers 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
    Includes:
  • Industry Revenue (2010-2024)
  • Industry Gross Product (2010-2024)
  • Establishments (2010-2024)
  • Businesses (2010-2024)
  • Employment (2010-2024)
  • Wages (2010-2024)

  • Table: Annual Percentage Change for Key Industry Data
    Table: Key Ratios for Industry Key Data
    Afv
  • 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.
  • Scrappage Scheme
  • A 2009 government incentive that offered a cash rebate to customers who traded in old cars when purchasing a new vehicle. The old cars were then scrapped.
  • 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 provides the latest industry statistics and industry trends, allowing you to identify the products and customers driving revenue growth and profitability. The industry report identifies the leading companies and offers strategic industry analysis of the key factors influencing the market.

    IBISWorld industry market research reports enable you to:
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    • Identify threats and opportunities
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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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