Portrait of the Used Car Market
Since the economic wreck in 2008 the auto industry has suffered as much, if not more than any other industry. next the smash came the bankruptcy of GM and Chrysler; the Cash for Clunkers Program; the increased sale of used cars over new; and in the same way as these increased sales of used cars higher than extra cars a subside in the supply of used cars. Fewer people are trading in their used cars for supplementary ones, then again they are holding upon 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 urge on to the "new normal."
As the auto industry felt the effects of the failing economy they clip urge on upon production producing fewer cars in 2008 and 2009 then before. They especially cut back up on truck sales and production in 2008 taking into account gas prices rose to an every era high and consumers stopped purchasing gas guzzlers and opted for something a tiny smaller and more fuel efficient. Now, when gas prices help by the side of consumers are looking for used trucks and SUVs and are finding a totally limited supply. Prices for used SUVs and crossovers have increased exceeding 30 percent in the last year due to the curt supply. ตลาดรถ
Some car dealers have seen the sales of used cars addition roughly 25 percent previously last year. Basic economics shows that behind 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. as soon as dealers go to auction to buy used cars for their lot they now have to pay more than what they did in 2008. support in 2007 a 2004 Buick Century in the manner of 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 pretend to have than the used cars from 20 years ago. in view of that the value of these cars has increased. Even even though used cars may cost more today the consumer can actually find a used car in good shape; for most buyers who cannot afford to purchase a further car in the manner of every the tiny extras they can now find and afford a used car that does have all of those further luxury features.
The limited supply concern is going to get worse back it gets better; in 2008 and 2009 entirely few new cars were sold and the predicted number for 2010 supplementary cars is without help 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 face on top of their vehicles every six months, but taking into consideration the current economy even they are holding onto their vehicles longer. The snowball effect is going to get worse as first 24-month cars, next 36-month cars and after that 40-month cars don't come incite 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 buy for the latest models has died down; as such the price of used cars is going to go occurring because no is trading in their cars.
Dealers are discharge duty what they dependence to accomplish to locate and save used cars upon the lot. They are sending fewer trade-in vehicles to auction and on the other hand are keeping them for themselves. They are furthermore comfortable 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 other cars upon the lot was 2-to-1 and now it is 3-to-1. Some car dealers are taking advantage of the used car puff sales and launch car lots specifically for used car sales. Hopefully the predicted fade away in the supply of newer used cars won't harm them too badly. The auto industry has seen enough damage in the taking into consideration 2 years and most likely the used car publicize is what they habit to acquire urge on on their feet. Although used cars are built bigger today they attain tend to dependence more child support after that further ones which could direct an bump in sales at the encourage center. And the bolster center is the bloodline of the car dealer; it is how they stay liven up in grow old of low other car sales.
As the auto industry felt the effects of the failing economy they clip urge on upon production producing fewer cars in 2008 and 2009 then before. They especially cut back up on truck sales and production in 2008 taking into account gas prices rose to an every era high and consumers stopped purchasing gas guzzlers and opted for something a tiny smaller and more fuel efficient. Now, when gas prices help by the side of consumers are looking for used trucks and SUVs and are finding a totally limited supply. Prices for used SUVs and crossovers have increased exceeding 30 percent in the last year due to the curt supply. ตลาดรถ
Some car dealers have seen the sales of used cars addition roughly 25 percent previously last year. Basic economics shows that behind 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. as soon as dealers go to auction to buy used cars for their lot they now have to pay more than what they did in 2008. support in 2007 a 2004 Buick Century in the manner of 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 pretend to have than the used cars from 20 years ago. in view of that the value of these cars has increased. Even even though used cars may cost more today the consumer can actually find a used car in good shape; for most buyers who cannot afford to purchase a further car in the manner of every the tiny extras they can now find and afford a used car that does have all of those further luxury features.
The limited supply concern is going to get worse back it gets better; in 2008 and 2009 entirely few new cars were sold and the predicted number for 2010 supplementary cars is without help 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 face on top of their vehicles every six months, but taking into consideration the current economy even they are holding onto their vehicles longer. The snowball effect is going to get worse as first 24-month cars, next 36-month cars and after that 40-month cars don't come incite 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 buy for the latest models has died down; as such the price of used cars is going to go occurring because no is trading in their cars.
Dealers are discharge duty what they dependence to accomplish to locate and save used cars upon the lot. They are sending fewer trade-in vehicles to auction and on the other hand are keeping them for themselves. They are furthermore comfortable 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 other cars upon the lot was 2-to-1 and now it is 3-to-1. Some car dealers are taking advantage of the used car puff sales and launch car lots specifically for used car sales. Hopefully the predicted fade away in the supply of newer used cars won't harm them too badly. The auto industry has seen enough damage in the taking into consideration 2 years and most likely the used car publicize is what they habit to acquire urge on on their feet. Although used cars are built bigger today they attain tend to dependence more child support after that further ones which could direct an bump in sales at the encourage center. And the bolster center is the bloodline of the car dealer; it is how they stay liven up in grow old of low other car sales.
Leave a Comment