A Look At the Used Car Market

Friday, May 27th, 2011 at 12:35 am

Comments ( 0 )

Free Online Articles Directory

Why Submit Articles?
Top Authors
Top Articles
FAQ
ABAnswers

Publish Article

0 && $ .browser.msie ) {
var ie_version = parseInt($ .browser.version);
if(ie_version Login

Email

Password

Remember me?
Lost Password?

Home Page > Automotive > A Look At the Used Car Market

Categories
AdvertisingArts & EntertainmentAutomotiveBeautyBusinessCareersComputersEducationFinanceFood and BeverageHealthHobbiesHome and FamilyHome ImprovementInternetLawMarketingNews and SocietyRelationshipsSelf ImprovementShoppingSpiritualitySports and FitnessTechnologyTravelWriting

]]>

A Look At the Used Car Market

By: Al Wannestadt
Posted: Oct 21, 2010

In 2008, when the economy took a big fall the auto industry was one of the hardest industries hit. With the crash came the bankruptcy of GM and Chrysler; the Cash for Clunkers Program; the increased sale of used cars over new; and with these increased sales of used cars over new cars a decline in the supply of used cars. Fewer people were trading in their used cars for new ones and instead were holding on to their current car for longer. The limited supply of used cars is something that will continue to be felt for many years even after the economy returns back to the “new normal.”

As the auto industry felt the effects of the failing economy they cut back on production producing fewer cars in 2008 and 2009 then before. They especially cut back on truck sales and production in 2008 when gas prices rose to an all time high and consumers stopped purchasing gas guzzlers and opted for something a little smaller and more fuel efficient. Now, with gas prices back down consumers are looking for used trucks and SUVs and are finding a very limited supply. Prices for used SUVs and crossovers have increased over 30 percent in the last year due to the short supply.

Some car dealers have seen the sales of used cars increase about 25 percent since last year. Basic economics shows that when the demand increases and the supply decreases the price has to increase. Used car prices have increased 10 percent nationwide from 2009. It is now harder for dealers to find gently used cars for a cheaper price. When dealers go to auction to buy used cars for their lot they now have to pay more than what they did in 2008. Back in 2007 a 2004 Buick Century with 70,000 would’ve gone for ,500 and now in 2010 it is going for ,500.

Read more articles
Repossessed Car Auctions- Tips when buying a New Car
Finest Used Auto for a Teenager – Buying Affordable Used Automobiles
Repossessed Car Auctions – How To Buy Cheap Used Cars
Buy And Sell Cars For Profit Review-Buy And Sell Cars For Profit

Also keep in mind that used cars today are in a lot better shape than the used cars from 20 years ago. Therefore the value of these cars has increased. Even though used cars may cost more today the consumer can actually find a used car in great shape; for most buyers who cannot afford to purchase a new car with all the little extras they can now find and afford a used car that does have all of those added luxury features.

The limited supply issue is going to get worse before it gets better; in 2008 and 2009 very few new cars were sold and the predicted number for 2010 new cars is only 11.5 million units. This means that in the coming years finding used 2008 and 2009 models it going to be difficult. Even rental car companies, which used to be a great source for gently used cars, are holding onto their fleet longer too. These companies used to turn over their vehicles every six months, but with the current economy even they are holding onto their vehicles longer. The snowball effect is going to get worse as first 24-month cars, then 36-month cars and then 40-month cars don’t come back as trade-ins; because they were never built or bought in the first place. The trend of trading in a car after two or three years after purchase for the latest models has died down; as such the price of used cars is going to go up because no is trading in their cars.

Dealers are doing what they need to do to find and keep used cars on the lot. They are sending fewer trade-in vehicles to auction and instead are keeping them for themselves. They are also willing to pay more for a used car at auction to bring to their lots. It used to be that the ratio of used cars to new cars on the lot was 2-to-1 and now it is 3-to-1. Some car dealers are taking advantage of the used car market sales and opening car lots specifically for used car sales. Hopefully the predicted decline in the supply of newer used cars won’t hurt them too badly. The auto industry has seen enough damage in the past 2 years and maybe the used car market is what they need to get back on their feet. Although used cars are built better today they do tend to need more maintenance then new ones which could mean an increase in sales at the service center. And the service center is the bloodline of the car dealer; it is how they stay alive in times of low new car sales.

Al Wannestadt – About the Author:

Al Wannestadt works as a freelance writer and marketer for companies like CarLocate, a web car listing service with new and used cars for sale. They are located at http://www.carlocate.com. When he is off the clock, Al writes about and stays up to date on the latest marketing innovations, and follows the latest news about the automotive industry and cars.

Source: http://www.articlesbase.com/automotive-articles/a-look-at-the-used-car-market-3521177.html

]]>

Increase your traffic today just by submitting articles with us, click here to get started.

Liked this article? Click here to publish it on your website or blog, it’s free and easy!

Rate this Article

1
2
3
4
5

vote(s)
0 vote(s)

Feedback
Print

0) {
ch_selected = Math.floor(Math.random()*ch_queries.length);
if(ch_selected == ch_queries.length) ch_selected–;
ch_query = ch_queries[ch_selected];
}
}catch(e){
ch_query = document.title;
}
]]>

Article Tags:
used car, used car market, buy a used car

Latest Automotive Articles
More from Al Wannestadt

Awesome Accessories For Your Car

You have the option to purchase a wide range of accessories for your car that can liven up the interior as well as the exterior. The following are a few idea. – The gear knob is usually a pretty boring aspect of a car, however this can all change when you buy a new one either online or from a store. No matter your idea of style you will be able to find a gear knob that supplements it. – One of the biggest things you can do to alter the look of your interior is to personalize you…

By: Parker Melendez

Automotive
May 26, 2011

Auto Shipping Industry Explained

In the past auto transportation industry was completely dominated by multinational car manufacturers and a person could only purchase a car from a dealer in his locality. These days things are very different. Every major city has independent car shipping companies which provide exceptional services at competitive rates. A person can purchase a vehicle from anywhere in the world and have it delivered to his doorsteps. However, the expansion of this industry at such a fast rate has…

By: Joe-Webster

Automotive
May 26, 2011

Motorcycle batteries best published on the web!

This is where by high-superior motorcycle covers and the specialization that helps make them one of a kind to your demands can help preserve your motorcycle wanting brand new year right after 12 months. Motorcycle covers are not an optional accessory, they are an critical merchandise for your experience, and the value of a superior excellent cover need to not be underestimated. Motorcycle covers protect your investment from scratches, dust, bird droppings, dangerous UV rays, snow, rai…

By: Tyrone Hodges

Automotive
May 26, 2011

Automobile Insurance For European Journey

Most automobile insurance coverage firms will be able to support you with 1, on request. A green card serves as an worldwide badge or as evidence of insurance for this reason, it is advisable for you to have one. The cost generally soars a small bit when the car is taken overseas. Nonetheless, you can choose for temporary cover, to ensure that your price range falls back in put after the stop by. Your insurance coverage firm ought to be in a position to give you the specifics on the n…

By: Edmund Huber

Automotive
May 26, 2011

Making An Old Car Look Fresh

Most car owners want to take pride in their vehicle and would like their old car to look a bit more fresh. If you do the following then you’ll have your old car looking like it just rolled off the lot again: 1* Give it a wash! Don’t just use any old washing liquids, some people use washing liquid not realizing it can be bad for the paint, instead get some specialist detergent designed for cars. Just go to the closest auto part store and you will have a massive choice of cleaning p…

By: Parker Melendez

Automotive
May 26, 2011

Car-Buyers Concerned With Mobile Health Monitoring; Ford Responds

Ford is responding to the consumer demand for faster and more convenient ways to monitor health and wellness on the go by modifying their in-car information system, SYNC, to bring car-buyers pertinent updates while they operate the vehicle. Working with a well known player in the mobile health information services field known as WellDoc, Ford hopes to have these features ready in the near future.

By: Al Wannestadt

Automotive
May 24, 2011

Hybrids Not Worth The Money

Gas prices are outrageous already and aren’t looking to go down anytime soon. Buying a hybrid should help ease the pain at the pump, right? Well it might but is it really worth it?

By: Al Wannestadt

Automotive
May 06, 2011

Cell Phone use while Driving- The government works to combat it

Local, state and federal government levels are analyzing bills from government officials on a daily basis to combat against cell phone use while driving. Distracted driving is a major problem and texting has become the latest headache for government officials
who are feeling the pressure to combat it. Many states have already stepped up to the plate and passed legislation banning the use of texting while driving and other states are in the process of pushing the law through.

By: Al Wannestadt

Automotive
Apr 27, 2011

New Year, New Target for Mercedes-Benz

With the new A-Class, Mercedes has decided to broaden its target market. Unlike any other Mercedes class currently on the market, the new design is absolutely unique in comparison.

By: Al Wannestadt

Automotive >
Cars
Apr 08, 2011

Redesigned 2011 Hyundai Elantra is Hot!

The 2011 Hyundai Elantra is one great looking car- newly redesigned for 2011 this car is really turning heads. With its great gas mileage, pricing and style this car is the leader in its class.

By: Al Wannestadt

Automotive
Mar 17, 2011

Comments on this article [0]
Add new Comment

RepoCarsForSale.Info

A Look At the Used Car Market

Leave a Reply

Best Links

Categories