When times are good, more new cars rolled out of the production line to meet consumer demand. With the current economic climate, demands for new cars have dropped significantly. Several major car companies such as Ford, Toyota, Dodge, and Chrysler are offering discounts to clear back-log of vehicles rolled out of the production lines. With the prices of new car sales falling, it does not take a rocket scientist to figure out where the used cars prices are heading, down! All these translate to better choices for the consumer. During recessionary period, used car transactions tend to have a higher turnover to make up for the loss in new car sales. With higher used vehicle volume coupled with continued depressed prices the market situation is favoring the consumer more than ever. bmw mk
Compact and midsized cars with lower gasoline consumption are the clear winner in times of volatile pump prices while prices of SUVs and pickups have fallen. However by the end of October 2008, with falling gas prices and falling prices of large used models, low in mpg, such larger models are generating a lot of interest again. According to Market Watch report dated Nov 7, 2008 there is a big jump in page views on Honda Odyssey, Honda Pilot, Chrysler Town and Country and Toyota Highlander. The Top Ten used vehicles are Ford F-150, Ford Mustang, Chevrolet Silverado, Honda Accord, Honda Civic, Dodge Ram 1500, Infiniti G35, Ford F-250, Jeep Grand Cherokee and Nissan Altima. While some car makers are fighting to stay afloat, new car dealers are faced with slumping sales. Used car yard dealers are also seeing declining sales, another sign of more bad time to come in the car industry. They are selling less and less cars and what can they do to cover their cost? They jack up the prices of each car to make up the differences. No wonder in the current market condition used car yard dealers are signing their own demise. In today’s used car segment, the biggest winner is the online vehicle auction market. Private car sellers are demanding more money for their car and trying to cut out the middlemen.
Furthermore, with inflation eating into the income of the badly hit middle-class earners, keeping their favorite car parked in the garage is becoming a burden. Vehicles that normally will not go into the used market are now being sold. Occasionally, you will find hugely discounted cars on auction websites, especially with the on-going financial difficulty in the market today. Desperate time’s calls for desperate action and the quickest, easiest way of disposing one’s vehicle at the shortest possible time with the widest range of interested buyer is the on-line auto auction website. This is why; the internet and auto auction sites are becoming ever more popular among internet users. Popular auto sites usually have a huge pool of Buyers and Sellers representing diverse group of people dealing in cars and trucks. The group comprises of Private Sellers & Buyers, Importers and Exporters, Car Dealers and Wholesalers. With such diverse group trading the online auction, it is not surprising that used vehicle sales on the internet market will become the No. 1 choice in the future and could well become a leading indicator of used car pricing.
The true power and efficiency of the market is always determined by free market demand and supply and in the case of online used vehicle auction, there is no abuse of the market resulting from price manipulation or coordinated pricing control by any groups or individuals. However, a stern warning to potential Buyer or first time buyer of cheap vehicles advertised for sale on the internet. What could have been a bargain may turn out to be a costly affair. Always engage an independent mechanic to verify claims on condition of the vehicle before purchasing or bid for the vehicle. When buying vehicle from internet auction site, always make a checklist: