|
Used Car Sales Significantly Impact New Vehicle lasting Values, pricing and Brand power |
Used Car Sales Significantly Impact New Vehicle lasting Values, pricing and Brand power
Sales of New and Used Vehicles Are Strongly Interrelated, According to a New Study from the Car Internet Research Program OTTAWA and PARIS (March 15, 2007) â€" The used car business is here to stay and will increasingly impact the new vehicle market in a variety of ways, including residual values, pricing, brand strength and customer relationships. As a result, manufacturer involvement in inventory management and used vehicle branding is crucial for enabling dealers to carry out successful remarketing programs.
These are among the findings from a new report focusing on the used car market published by the Car Internet Research Program (CIRP). The study, titled "Anatomy and Physiology of the
Used Car Business," provides an in-depth analysis of the used vehicle market with a particular focus on four key markets: U.S., Canada, France and Germany. The research examines:
(i) The growth of the used car business, in both size and importance,
(ii) Global trends affecting the used car business,
(iii) The customer buying process, including Internet usage,
(iv) A comparative analysis of the four markets, and
(v) Success strategies for dealers/manufacturers.
The importance of the used car market is growing significantly. In both the U.S. and France, for example, the used-to-new vehicle ratio has increased since 1999 from 2.4 to 2.6, showing a steady growth of used vehicle sales by volume. In addition, used vehicle sales in the U.S. are today more than twice as profitable for dealers as new vehicle sales (a roughly 2.7% profit margin, as compared to 1.2%).
While national used vehicle markets differ in character and structure due to a variety of socio-economic, regulatory and other factors, the report identified six core strategies that are essential for growing used vehicle sales:
Read more at: . |
