when the economy goes south, as a rule, the new car market gets hammered, and the used car market picks up a bit. During the economic recovery, which is what we are experiencing now the United States, usually in new car sales take off, and used car market contracts, but this time there are other changes, and factors in the work. Currently, the automobile market in mid-2011 to 2012 seems to be quite dynamic and solid. In fact, it has experienced significant growth in comparison to other sectors of the economy.
There is an interesting article in the Wall Street Journal not long ago titled "Farewell to Central Collecting Supplies used-car Bargain" Jeff Bennett and Mike Ramsey. This article describes how the used car market has been rocking lately as the inventory dwindles, and consumers still a challenge. Prices have crept significantly in the past year, especially for the use of fuel efficient compact cars, where prices were up almost 20% over the previous year. Medium-sized cars also have close to 15% with as many luxury cars and vans up too, what is surprising about 2 %.
Now therefore, I would like to add a few other factors in this debate, one, a shortage of parts for new models of cars from Japanese automakers. Two recently Mississippi Flood, which flooded thousands of cars from the 10s, and;. Three tornadoes in Alabama and other states in which there are many auto makers
And now, with Toyota's idling some of its plants due to the earthquake and tsunami in Japan, along with Honda, there is a shortage of parts, yes, even for a domestic car that will chew some of the new car inventory that is parked at the docks, auto dealerships, or waiting to be sold. However, when people can not find the vehicle you want, often turning to used cars. A lot of people can not afford a new car right now, because the program funding is not approved by a good number of people who have had their credit wastes due to the economy.
with major accidents and Mother Nature events, such as the flooding Mississippi, Alabama and tornadoes, many cars were destroyed and will have to be replaced. Meanwhile, Alabama, a tornado took out of the supply chain of component makers, as well as several manufacturing facilities and power-plant nearby that helped them to act. Yes, those big companies will be sure to try to get everything back online as soon as possible. However, it will cause more shortages in the new car's contents.
Another thing to worry about when it comes to the Mississippi flood water has inundated all the cars will be cleaned, and people will try to sell them at auto auctions. Cars with flood damage still having problems down the road. There are problems of corrosion, corrosion problems, contaminated oils and fats, and electrical problems. You do not want to buy a car that was submerged for several days. And there are laws against this, but they often make used cars on the market in any case, when in reality they only need to break and recycle.
As you can see the used car market is looking pretty good, but we should be cautious when buying used cars. Indeed I hope, I pray you will consider that and think of him. If you have problems, questions or case studies involving any of these topics please shoot me an e-mail, because we are constantly looking for industry data.
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