There are numbers of factors that is helping a general consumer to make their decision for buying a used car or to buy a brand new car. These deciding factors will give you a brief review, if you are interested in buying the used automotive and will also depict the trend in the used automotive industry. These deciding factors include prices, depreciation, leasing, auction and other factors. Lets analysis each factor individually.
It has been supposed that the prices of used cars must go down every year and as the car gets older; its price must go down. But reality and number patterns, in used automotive industry have shown the increasing trend in terms of prices. The new cars that have been purchased last year are now costing more than its original worth.
The used automotives auctioning companies are also admitting this fact that all the midsize and compact cars’ prices have shoot up by 60% and the prices of pickups, trucks and large SUVs have shoot up by 5% as compared to last six months.
The other crucial deciding factor in used automotive industry is depreciation. As the automotive is driven off the forecourt, its value depreciates by 20%. While if consumer is interested in buying a used car, that has been sold on auction which is one or two year old will offer much less than the cost of new car.
Also it has been seen that cars in America, depreciated more quickly due to numerous reasons like: styling, quality and reputation.
The other important factor in used automotive industry is leasing. Fewer used cars are coming off on leasing. The fact is that as the massive amount of used cars are now sending for auctions; the overall used automotive industry has seen the reducing sale over leasing.
In the used automotive industry, auction of used cars online has provided an ease for car dealers and suppliers. On the basis of data gathered by these auction companies, it has been found that the demand for the used automotives has been shooting up. Auction companies have made it easy for every one by providing one online platform, to buy the desired automotive.
5. Other factors:
Other deciding factors that have increased the traffic towards used automotive industry are ever rising gas prices in the international market and recent earthquake and tsunami in Japan. The earthquake has stopped manufacturing of automotives that is why dealers now will try to more focus on used automotive industry.
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