First Research US Industry Profile

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Used Car Dealers
SIC Codes: 5521
NAICS Codes: 441120
Last Quarterly Update: 3/11/2019
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).
Leading countries for used car sales outside the mature markets of the US, Europe, and Japan include Brazil, India, and China. The Chinese used car market has seen rapid growth.
The US used car dealer industry includes about 25,000 dealers with combined annual revenue of about $85 billion. Auction houses and wholesalers that buy and sell used vehicles are not included in this industry. Dealers that sell both new and used vehicles are covered in a separate industry profile.
Competitive Landscape
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.
Used car dealers compete with the used car divisions of new car dealers and with private sellers. Dealers that offer repair and maintenance services compete with a variety of independent shops and chain outlets.
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. ... plus:
Sales & Marketing
Finance & Regulation
Regional & International Issues
Human Resources
Also includes the following chapters:
Quarterly Industry Update
Industry Indicators
Business Challenges
Trends and Opportunities
Call Preparation Questions
Financial Information
Industry Forecast
Industry Websites
Glossary of Acronyms
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