Motor Trade Economics Chapter 2


This e-book poses the fundamental question – what impacts on the the traditional automotive retail dealer business model and is it viable for the future. It puts forward the proposition that understanding simple economic and business planning concepts, such as price elasticity, GDP and business planning can help dealers to understand the drivers of demand and how to maintain their own profitability.


Chapter 2 explains the dealership business model – “the economics of the box” and the key variables that must be managed