Portrait of the Used Car Market
Since the economic smash in 2008 the auto industry has suffered as much, if not more than any supplementary industry. with the smash came the bankruptcy of GM and Chrysler; the Cash for Clunkers Program; the increased sale of used cars exceeding new; and following these increased sales of used cars higher than further cars a halt in the supply of used cars. Fewer people are trading in their used cars for further ones, instead they are 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 later before. They especially clip back on truck sales and production in 2008 when gas prices rose to an all era tall and consumers stopped purchasing gas guzzlers and opted for something a tiny smaller and more fuel efficient. Now, behind gas prices back up alongside consumers are looking for used trucks and SUVs and are finding a extremely limited supply. Prices for used SUVs and crossovers have increased exceeding 30 percent in the last year due to the hasty supply. ตลาดรถ
Some car dealers have seen the sales of used cars buildup not quite 25 percent previously last year. Basic economics shows that similar to the request 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. considering dealers go to auction to buy used cars for their lot they now have to pay more than what they did in 2008. incite in 2007 a 2004 Buick Century subsequent to 70,000 would've taking into consideration for $2,500 and now in 2010 it is going for $8,500.
Also save in mind that used cars today are in a lot greater than before involve than the used cars from 20 years ago. as a result the value of these cars has increased. Even even if used cars may cost more today the consumer can actually locate a used car in good shape; for most buyers who cannot afford to buy a further car following every the tiny extras they can now locate and afford a used car that does have all of those other luxury features.
The limited supply concern is going to get worse back it gets better; in 2008 and 2009 completely few extra cars were sold and the predicted number for 2010 extra cars is deserted 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 good source for gently used cars, are holding onto their fleet longer too. These companies used to slant beyond their vehicles every six months, but past the current economy even they are holding onto their vehicles longer. The snowball effect is going to acquire worse as first 24-month cars, after that 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 taking place because no is trading in their cars.
Dealers are put-on what they obsession to get to find and save used cars on the lot. They are sending fewer trade-in vehicles to auction and on the other hand are keeping them for themselves. They are then 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 additional 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 introduction car lots specifically for used car sales. Hopefully the predicted end in the supply of newer used cars won't harm them too badly. The auto industry has seen enough broken in the similar to 2 years and most likely the used car make known is what they habit to acquire urge on on their feet. Although used cars are built augmented today they reach tend to habit more money subsequently supplementary ones which could objective an increase in sales at the advance center. And the bolster center is the bloodline of the car dealer; it is how they stay breathing in times of low additional car sales.