The Used Car Industry :: essays research papers

The Used Car IndustryIn the chivalric 30 age, the United States auto exertion has gone through somechanges. In order to stay competitive with a foreign market, forever and a daythreatening to eat away at profits, the American auto industry has had torespond by existence flexible and adapt itself to this new situation. Although, inthe past, they were slow to get the message sent out by the consumers, the national auto industry now seems to be more than willing to analyze, and answer,the demands of a smarter, savior consumer. The growth of the use political machine field hasbeen a maent of these demands.Rising, higher prices for new cars have caused the typical American consumer toexamine sky solutions for their transpiration of necessity. As the average caron the road is 8 years old, comp atomic fig 18d to 5.8 years in 1970, the signal to theauto industry has been that cars are being built better and consumers are notafraid to buy them.Of course, this preference does not come without an opportunity cost for theconsumer. A used car will generally be bought on the condition "as is" or, atbest, with a very limited warranty. If a buyer of a used car drives off the lotand decrees they have purchased a vehicle that needs lots of cash spent on it forrepairs, they may possibly find themselves out of luck. Another downside maycome as more batch continue to saturate the market, looking for used cars tobuy, the resources available will belong scarce. An increase in used car pricesmay gradually fit to rise. As the figures indicate, for now consumers seem tobe content with taking this risk. sales for used cars and trucks last yeartotaled at 15.1 million(going on your articles figures).The auto industry has been busy changing and evolving to answer consumer demands.One of these signs has been the growth of deep auction houses that areappearing all over the country. Big investors are attracted by the potentialprofits, which are an average of 1.5% o f the wholesale price. The auctioneersmake their money by auctioning off used cars and trucks mainly to dealers only,and are supplied with vehicles that come from trade-ins, repossessions, contractvehicles, and smaller used car lots. With this reallocation of resources manyof the smaller mom and pop used car lots have been bought out, or agonistic out ofbusiness.Competition is heating up with the rise in the number of auction houses. Thishas forced the auctions to be more selective in the kinds of vehicles they offer.