Road Ahead Used Car Dealers
Los Angeles, CA (PRWEB) May 20, 2012
In the five years to 2012, US automakers struggled to stay afloat. Before filing for Chapter 11 bankruptcy in 2009, General Motors and Chrysler accepted nearly $ 25.0 billion in government assistance. Turmoil in the market for asset-backed securities eroded the balance sheets of auto financiers, triggering dramatic tightening of credit standards and availability. While Used Car Dealers industry operators ?have a similar structure and are sensitive to some of the same factors that new car dealers face, the industry weathered these challenges much better than other industries in the automotive sector,? says IBISWorld industry analyst Radia Amari. Over the five years to 2012, industry revenue has contracted at an annualized rate of 3.7% to $ 71.6 billion. In 2012, revenue is expected to grow about 1.2%, supported by financing revenue from credit-poor consumers, despite losses of customers to new car dealers.
Used car dealers offered independent financing solutions to outperform the automotive sector during the downturn. While new car dealers rely on financing companies to fund consumers’ purchases, used car dealers often offer in-house financing known as buy here, pay here (BHPH). Traditionally, customers who purchase vehicles on a BHPH basis have C- and D-grade credit ratings. Says Amari, ?Even customers with B-grade credit had difficulty finding affordable financing during the credit crisis.? These customers purchased vehicles from used car dealers on a BHPH basis rather than opting for traditional financing from new car dealers. The Used Car Dealers industry is firmly in the mature phase of its life cycle and has a low market share concentration. With the diffuse and highly saturated nature of this market, significant changes in industry concentration are unlikely to occur. Major company CarMax’s notable growth was achieved organically, with no mergers or acquisitions. So any major increases in industry concentration are most likely to occur within CarMax or another used car dealer adopting similar business practices.
The recession greatly reduced consumers’ willingness and ability to purchase vehicles. Unemployment and asset price declines, including homes and stocks, cut into consumers’ income and savings. Consumers with poor credit (a large portion of industry customers) have been among the worst hit. Consumers with D-grade credit spent $ 11.0 billion at used car dealerships in 2009, a 51.7% decline from 2008. Fortunately, relative economic stability is encouraging spending on used cars. Used car sales are expected to grow in 2012, and the US economy will begin growing in earnest again in 2013. Because car sales typically move with the business cycle, car sales will also grow in earnest. For more information, visit IBISWorld?s Used Car Dealers in the US industry report page.
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IBISWorld industry Report Key Topics
Companies in this industry sell used passenger vehicles, including passenger cars, light trucks, sports utility vehicles (SUVs) and passenger vans. Used car dealers also provide financing and insurance services.
Industry Performance
Executive Summary
Key External Drivers
Current Performance
Industry Outlook
Industry Life Cycle
Products & Markets
Supply Chain
Products & Services
Major Markets
Globalization & Trade
Business Locations
Competitive Landscape
Market Share Concentration
Key Success Factors
Cost Structure Benchmarks
Barriers to Entry
Major Companies
Operating Conditions
Capital Intensity
Key Statistics
Industry Data
Annual Change
Key Ratios
About IBISWorld Inc.
Recognized as the nation?s most trusted independent source of industry and market research, IBISWorld offers a comprehensive database of unique information and analysis on every US industry. With an extensive online portfolio, valued for its depth and scope, the company equips clients with the insight necessary to make better business decisions. Headquartered in Los Angeles, IBISWorld serves a range of business, professional service and government organizations through more than 10 locations worldwide. For more information, visit http://www.ibisworld.com or call 1-800-330-3772.
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London Mep Visits Telemarketing Company
London, England (PRWEB UK) 16 May 2012
SCi Sales Group (SCi) invited Baroness Ludford MEP to witness first-hand how business-to-business (B2B) data is managed by UK telemarketing agencies and discuss the impact of the new EU Data Regulation.
Sarah Ludford is a lead member of the European Parliament?s civil liberties, justice and human rights committee, and shares SCi?s desire to ensure the proposed Regulation balances the needs of both consumers and commerce.
The Regulation is intended to protect individuals with regard to the processing and movement of personal data. As such, it will affect the direct marketing industry, placing new constraints and obligations on how companies acquire and process personal information.
Graham Smith, Marketing Director at SCi and member of the DMA?s Telemarketing Council, is keen to highlight potential flaws in the Regulation. He believes personal data could be interpreted to include personal work email addresses, direct lines and company mobile telephones. The Regulation stipulates that such personal data can only be collected and stored if you have ?express consent? from the individual.
Graham commented ?We support greater uniformity across Europe on the subject of Data Protection, but feel the Regulation fails to understand the difference between B2B and B2C data. In addition, the phrase ?express consent? is open to interpretation. We are perhaps being set-up to fail.?
SCi believes that business-to-business (B2B) purchases and behaviour should not be considered as personal data, and therefore should be treated differently under the Regulation.
Graham explained ?If I purchase a camera for myself it reveals information about my personal disposable income, my personal brand preference and my personal shopping habits. If I purchase a camera for my company it reveals information about my company?s preferences, but nothing about me.?
SCi are also seeking clarification on what is meant by express consent. The Regulation states companies must obtain express consent through ?clear statement or affirmative action?, but gives no practical advice on what form that should take. Is agreeing to receive a newsletter during a sales call express consent, or would customers need to email their consent as proof?
The Regulation also outlines a new ?right to be forgotten?, which would force companies to remove all record of a person if they make a request. Graham highlighted a potential flaw ?A customer may choose to be ?forgotten? by British Gas. Then a year later request to receive information from all gas suppliers. But we cannot prevent them getting British Gas information because we?ve been told to forget them.?
Furthermore, IP addresses would be classified as personal information under the new law. This may mean that web analytics would no longer be available to Marketing Managers, and buyers would get a less personal experience when visiting websites.
Sarah Ludford listened to the issues raised by SCi and agreed there needed to be a balance between consumer and commercial interests. She commented ?I welcome the new Regulation because it heralds much greater enforcement powers for national regulators, with bigger fines. It also aims to change the mindset of bodies processing personal data from formal box-ticking coupled with careless practice, to responsible and accountable stewardship.
?However, a balance has to be struck between protecting personal data while not burdening UK firms with over-prescriptive laws.?
SCi intends to continue the dialogue with Sarah Ludford, as well as the Information Commissioners Office and Ministry of Justice, to highlight flaws and areas for improvement in the new Data Regulation.
The company have produced a PowerPoint presentation for managers wishing to understand the impact of the new Regulation on direct marketing. It can be downloaded from the SCi website at http://www.scisalesgroup.com/knowledge/packaged-presentations
About SCi Sales Group Ltd
Established in 2002, SCi Sales Group began life as a B2B telemarketing agency and grew to become a leading sales acceleration specialist. The core of the company?s service is still telemarketing, but it has added other offline/online marketing tools to its portfolio.
Clients range from enterprise multi-nationals such as eBay, 3M and Oracle to SMEs and start-up companies. SCi?s marketing services extend beyond the UK and Ireland to include Europe, North America and Australasia.
About Baroness Sarah Ludford MEP
Baroness Sarah Ludford MEP has been a Member of the European Parliament, representing London, since 1999. A senior member of the European Parliament civil liberties, justice & home affairs committee, she has taken a leading role in formulation of EU cooperation measures on crime, terrorism and data exchange but also on data protection and civil liberties safeguards.
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I’m considering moving to a rural area….The subdivision that I checked out had 8 more lots open and the subdivision couldn’t be no more than a 1.5yr old and there were about 8 homes that was bought and up for sale by owner. What does that mean?
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It could mean that the same owner is buying them up and then reselling them at higher price. Or it could mean that someone had bought them before being built and have decided for whatever reason that they want out of it.
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