Sunday, June 2, 2019
The Used Car Industry :: essays research papers
The Used Car IndustryIn the past 30 years, the United States auto industry has gone through manychanges. In commit to stay competitive with a foreign market, constantlythreatening to eat away at profits, the American auto industry has had torespond by universe flexible and adapt itself to this new situation. Although, inthe past, they were slow to get the message sent out by the consumers, thedomestic auto industry now seems to be more than willing to analyze, and answer,the demands of a smarter, savior consumer. The growth of the utilize railroad gondola car field hasbeen a result of these demands.Rising, higher prices for new cars have caused the typical American consumer toexamine alternate solutions for their transpiration needs. As the average caron the road is 8 years old, comp atomic number 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 choice does not fare withou t 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 finds they have purchased a vehicle that needs lots of money spent on it forrepairs, they may possibly find themselves out of luck. some other downside maycome as more people continue to saturate the market, looking for used cars tobuy, the resources available will become scarce. An increase in used car pricesmay gradually start to rise. As the figures indicate, for now consumers seem tobe content with taking this risk. Sales for used cars and trucks last year add up 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 large auction houses that areappearing all all over the country. Big investors are attracted by the potentialprofits, which are an average of 1.5% of the w holesale 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, leasedvehicles, and smaller used car lots. With this reallocation of resources manyof the smaller mom and pop used car lots have been bought out, or labored 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.
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