Automotive Dealer Group - Environmental Analysis
ENVIRONMENTAL ANALYSIS
Industry Trends
A number of basic trends are changing the dynamics of the automobile industry. They include:
- a 25 percent increase in car prices over the last five years
- a growing supply, demand and profit margin for loaded used cars
- the changing dynamics of vehicle ownership
- the explosive growth of leasing
- the need for a broader range of dealer profit centers
- the increased demand for subprime credit options
- the dilution of the traditional dealer franchise system.
Let's take a closer look at these trends. New car prices are rising faster than the overall rate of inflation. According to Leasing Now, this steady increase is forcing potential buyers to reconsider a decision to purchase a new car. For example, when faced with a choice between buying a new car and a major home purchase (a computer, entertainment system, major appliances, etc.),...
[The entire page is 3257 words long]
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