The Used Car Industry :: essays research papers

The Used simple machine IndustryIn the past 30 years, the United States gondola manufacture has gone through manychanges. In order to stay warring with a foreign market, constantlythreatening to eat away at profits, the American auto industry has had torespond by being waxy and adapt itself to this new situation. Although, inthe past, they were slow to get the message direct out by the consumers, thedomestic auto industry now seems to be more(prenominal) than willing to analyze, and practise,the demands of a smarter, savior consumer. The growth of the utilize elevator elevator car field hasbeen a result of these demands.Rising, higher prices for new cars corroborate caused the typic American consumer toexamine alternate solutions for their transpiration needs. As the fair(a) caron the road is 8 years old, compared 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 come on without an opportunity be for theconsumer. A used car will gener everyy 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 gobs of money spent on it forrepairs, they may possibly find themselves out of luck. Another 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 be 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 over the country. Big investors are attracted by the potentialprofits, which are an average o f 1.5% of the wholesale price. The auctioneersmake their money by auctioning off used cars and trucks primarily to dealers only,and are supplied with vehicles that come from trade-ins, repossessions, leasedvehicles, and smaller used car lots. With this reapportionment of resources manyof the smaller mom and pop used car lots have been bought out, or forced 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.