Used Car Dealers
Brief Excerpt from Industry Overview Chapter:
Companies in this industry sell a variety of used vehicles including passenger cars, light trucks, SUVs, and passenger and cargo vans. Major companies include CarMax, DriveTime, and America's Car-Mart (all based in the US), as well as Nextage and Hanaten (both based in Japan), Cargiant (UK), Porr Equipment Services (Austria), and Automobiles Delec (Canada).
Demand is driven by consumer spending and interest rates. The profitability of individual companies depends on high inventory turnover, exceptional customer service, and effective marketing. Large companies provide a wider variety of vehicles. Small companies can offer a boutique car-buying experience and provide more individualized customer service. The US industry is highly fragmented: the top 50 companies account for about 25% of revenue. About 55% of US used car dealers have fewer than five employees.
PRODUCTS, OPERATIONS & TECHNOLOGY
Sales of used cars and light trucks are the primary source of revenue; some dealers also provide financing and routine maintenance and repair services. The used car market can be segmented by price or type. Some dealers sell a mix of used mass market and luxury cars.
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