Mintel examined the car retail sector in November 1997 and since then the sector has been going through a period of change, with new methods of car retailing becoming evident, new players entering the market, and most significantly, the very real prospect of a major shake-up in the traditional manufacturer/dealer relationship. With so much happening, it is an appropriate time to assess the current and developing trends in order to establish how the market will evolve in the future. In this report, Mintel will examine the main recent developments in car retailing and address the hypothesis that:

"...while the traditional car dealership continues to be the most popular distribution channel, new technology, legislation, and buying behaviour will create opportunities for new market entrants."

The market has been traditionally slow to respond to consumer needs, but the pressure placed on it by consumers who are concerned with high prices is forcing dealers and manufacturers to reconsider their approach. The way cars are purchased from dealers will undergo a fundamental change if the Block Exemption is lifted in 2002. Dealers will be able to sell more than one marque in the same showroom, as the manufacturers will lose their exclusive franchise rights over the dealers. The report examines the likely effects of this change, along with other major drivers of change within car retailing.

The development of e-commerce as a new method of selling cars is also examined, as is the willingness of consumers to consider purchasing cars from abroad in order to get better value for money on new models.

The used car sector still dominates the UK market in volume terms. This sector is becoming increasingly sophisticated and retailers of used and nearly-new cars are devoting more resources to it. The report considers the main retailing methods employed by the companies operating in this sector of the market, as well as new retailing formats such as car supermarkets and SACKs.

Other Mintel reports of relevance include:

Car Aftermarket - Small Parts, Market Intelligence, June 1999

Car Accessories, Market Intelligence, April 1999

Car Finance, Financial Intelligence, April 1999

Car and Van Hire, Market Intelligence, December 1998.