This article will discuss the Used cars industry and if it is on the verge of collapse or not. One aspect that could lead to a decrease in sales would be because people are going to want to purchase new cars, however, this may not be a factor in a few years. There are many buyers for used cars including individuals who want a cheaper alternative and businesses that buy them cheaply by the lot.
In addition, there were over 7 million Americans over 55 years old from 2000-2010 which makes up about 25% of total vehicle sales. This shows that more and more elderly people are trading in their cars for newer models causing a major crash in the used car industry. There is also a steady increase of college graduates entering the workforce each year which makes the market for used cars smaller. With more and more of these individuals getting jobs, they will need to purchase new vehicles for their jobs and families and not necessarily trade them in.
There is more than enough of a market to sustain itself but one of the biggest problems is because so many people are choosing to purchase new cars rather than used ones. The number of foreign automobiles being bought has risen by 1 million since 2008, making it almost impossible for U.S.-based used car dealers to compete, this has decreased the number of auto sales in the U.S. by 4%.
According to a report from Autotrader, a total of 12 million used vehicles were sold in 2013. With a decrease of almost 4 million from the previous year, it shows that over 62% fewer vehicles were sold in 2013 compared to 2004 when there was a much larger increase in sales. It is important to note that even with all these factors that could lead to an increase in sales, there still are many consumers who could purchase cars for much cheaper prices by purchasing them from any dealership they choose since the going rate is going down every year. This means that there will be people who are willing to pay much more money for a car even though it is far less expensive to purchase one used.
If the theory that the Used Cars Industry has collapsed is proven true there could be some substantial repercussions. The Used Car Industry has been thriving for years and if it does fall, it will have a negative impact on not only the used car sales industry but also on other industries around the country as well. If millions of individuals are never able to trade in their cars then the auto industry will take a major hit which could greatly decrease employment in Southern California. Even if millions of people are still able to trade in their vehicles they will have to drive them until they are no longer operational. This means that they will be stuck in traffic while others are driving newer vehicles leaving them to sit at a red light until the opportunity to trade them in arises.
If the Used Car Industry does not collapse, then a significant amount of job losses could occur nationwide causing a massive decrease in employment. The Used Car industry could also be affected if people start purchasing new cars instead of trading theirs in, making less used cars available for sale. In addition, there would probably be fewer companies that sell used cars as well as less competition from other dealerships which would make it harder for buyers to find the vehicle they want at the price they want.
A decrease in employment could also happen if people are unwilling to purchase new cars because they are afraid that they will not be able to afford one. This is because if too many people will not be able to afford a new vehicle then the Used Cars industry will have an even harder time making money than it already is.
There could also be a decrease in jobs and business opportunities due to the fact that there would no longer be an economic incentive for car manufacturers and dealerships to come up with newer models. A decrease in jobs and opportunities could lead to a decrease in businesses which means less revenue for the U.S.