| SIC Codes: | 5511 5521 |
| NAICS Codes: | 441110 441120 |
Companies in this industry sell high-end new and used vehicles. Luxury cars (those costing more than $30,000) account for about 15 percent of the US car market. Major brands include BMW, Mercedes, Lexus, Cadillac, and Lincoln. Moderate growth is forecast for the industry over the next two years, as interest rates are expected to remain low compared to historical norms.
Demand is driven by consumer spending and interest rates. Large companies can offer a wider variety of vehicles and well-stocked dealer lots. Small companies can offer a boutique car-buying experience and provide more individualized customer service. The industry is highly fragmented: most dealerships are independently owned.
Luxury car dealers sell new and used vehicles and provide routine maintenance, repair, and warranty service and parts. The luxury car market can be segmented by price (lower, middle, upper) or type (sedan, SUV, sport luxury, super luxury). Foreign brands, particularly German and Japanese, dominate the luxury car market. Due to industry consolidation, some dealerships sell both mass market and luxury brands. Annual sales average about $35 million for new car dealers, but luxury dealers can generate well over $100 million.