Industry Analysis & Industry Trends
The Motor Vehicle Dealers industry has driven along a bumpy road over the past five years despite rebounding strongly following the global financial crisis. High fuel prices have been the major cause of the industry's revenue decline, as consumers have shifted their demand towards more fuel-efficient small cars that have cheaper price tags. Dealerships have been selling higher volumes of cheaper small cars and lower volumes of more expensive large cars, resulting in per-unit revenue declining. Strong price competition, improved production efficiencies overseas, a reduction in the motor vehicle tariff and a high Australian dollar have forced overall prices down. While lower prices have benefited the industry by increasing demand, they are expected to result in a 0.5%... purchase to read more
Industry Report - Starting a New Business Chapter
The Motor Vehicle Dealers industry has moderate barriers to entry. The franchise agreement is a barrier to entry in the industry, as franchisors are able to decide when, where, and if further franchise agreements will be let. The franchise agreement also specifies expected sales targets and performance measures. These factors can make it difficult for prospective franchisees to enter the industry.
Entry into new vehicle dealerships is also constrained by the costs of entry into franchises, which can be substantial. Larger dealerships can cost up to an estimated $2 million, just for the franchise fee... purchase to read more