Industrial growth and decline can be measured by the latest trends that are going on in the particular industry. Let’s see that how the used automotive industry has been performing in the trend of global recession.
Global recession has affected every industry. The prices of brand new cars have shot up due to the fact that raw material prices have faced the rising trend. The brand new automotive is now costing more than $20,000. While on the other hand, the earning power and the salaries of the consumers have not increased. Recession has knocked many industries and caused downsizing in many firms. The purchasing power of the consumers, due to this reason has gone down. They are delaying their unnecessary luxuries and now focusing on the necessities. The automotive for traveling is one of the major necessities now-a-days. This has increased the over all demand in the used automotive industry. Consumers are trying to save their money by putting limits on their desires and compromising with what they can afford within their budgets.
The other dimension that can be viewed in used automotive industry is that, the rental cars industries offer new and stylish cars. They are used to send the used automotive for auctions that is another reason that have increased the number of used automotive in the auction companies and has lessen down the prices of used cars. Decrease prices however, does not decrease the overall worth of the used automotive. Online auction companies have provided an ease for the consumers to buy the used automotive of various types under one roof.
The used automotive industry with increasing demand is now being $100 billion industry. The used automotive industry is selling almost 20 million used auto motives in a year. This has clearly pictured the growth of used automotive industry. With this progress and other factors like Japan’s earthquake and t-tsunami; and shooting up gas prices has forced the dealers of brand new cars to shift towards the used automotive industry. The number of used automotive dealers has risen immensely from 100 dealers. Many dealers have placed the used automotives in their showrooms so to ensure high sales and profits.
Over all the used automotive industry has shown the higher rate of returns than the brand new exclusive automotives. Bottom line is that recession has not seriously impacted the used automotive industry. So if you are interested in buying the used automotive, you can do it without any hesitation.