Impact of Used Car Imports on Brand New Car Dealerships

Drawing on the findings of a qualitative research done in Botswana and Malawi, the book substantiates impact gray imports has had on brand new car dealerships. It discusses how markets of used cars are created and how exports of used cars grew. Pointing out primary and secondary drivers that cause growth of used car markets in Africa, the book explores gray imports in Botswana and Malawi. It analyses forces working for and against brand new car dealerships and discuss marketing of brand new cars and back-up services. The book concludes that gray imports affected sales of volume brands because gray imports have positive cross elasticity of demand and are therefore substitutes to low-level volume brands. Economy and premium brands were not affected very much. Dealerships affected do vigorous marketing of their cars and back-up services. This book can be an anchor to researchers and scholars because there is scarcity of researched materials on used cars, mainly in Africa and it shows practical application of grounded theory in research. It can guide investors in motor industry or car dealers in managing their business in the light of used cars or gray imports.