Industry Overview

 

Industry Highlights

  • The used vehicle marketplace is valued at over $376 billion at the retail level.
  • Total new and used vehicle sales reached a record 59.8 million units in 2001, reflecting a strong economy, price competitiveness and a highly efficient remarketing system.
  • The average price of a used car has risen to $8,830 in 2001 from $6,140 in 1991.
  • Statistics show 1.6 wholesale transactions supporting each retail sale. The efficiency with which these supporting transactions are conducted is vital to the overall health of the market.
  • In 2001, franchised and independent dealers took in 21.8 million used units in trade from customers, as more and more Americans opted to move up to a newer model.
  • North American auctions sold 9.4 million units consigned from dealers or remarketed for consumer lease firms, manufacturers, daily rental companies and fleets in 2001.
  • International vehicle remarketing is in excess of 120 million units per year.

 

Major Players

  • Vehicle Manufacturers
  • Franchised Automobile Dealers
  • Independent Automobile Dealers
  • Wholesalers
  • Fleet Operators
  • Rental Car Companies
  • Leasing Organizations
  • Banks and Financial Institutions
  • Auto Reconditioning, Appraising, Titling Organizations

 

Industry Importance

The auto remarketing industry is big and getting bigger. Over the last 10 years, its value has increased 64%. In terms of 2001 remarketing retail revenue ($376 billion), it is larger than the chemical industry ($237 billion*) and the restaurant/bar industry ($285 billion**). Auto remarketing includes a host of diverse businesses from financial services to parts manufacturers, making it a major factor in the U.S. economy.

Total number of used vehicle units sold has grown steadily to 42.6 million in 2001 from 37.3 million units in l991. Over the next decade, it is expected that the number of used vehicle units sold will increase by approximately 600,000 per year with a corresponding one million increase in total wholesale transactions.

* The Value Line estimates
** Wall Street Journal article