As per recent automotive economic figures, the US sells around 17 million cars every year generating a total revenue of almost US$ 118 billion in that same time span. Over 50% of those sales are generated by the used car market and this particular niche has grown by a steady figure of 6% annually since the financial crisis of 2008. To put the importance of used car dealers into perspective, take that 50% of used car sales away and then think of the American economy where a massive chunk of revenue flow is missing. The whole chain will collapse very soon.
The importance of the used cars market
In a way, the used cars market benefits the new cars market. When people have a place to sell their existing car, they become more inclined to replace that vehicle and buy a new one. This trend brings business to car manufacturers and retailers who then have the option to produce and sell new models of their cars. In the absence of a used car market, consumers will no longer have an area from where they can gain something out of their car. The tendency will be to hold on to their existing vehicle and car manufacturers will lose business in the process.
Now, look at things from the buyers’ perspective of used cars. A 3-year old model is more affordable than its new counterpart and the 6-year old model comes at an even cheaper amount. Hence, people of all economic backgrounds can afford a car which would be impossible without the availability of the used car market. This leads to convenience in living, grows employment, and helps other businesses as people can now commute. Even the transportation sector or shipping companies, new cars are excessive investment and will often demand a high seed capital. But with used cars, almost anyone can get their life going.
And then there are the other related sectors that depend heavily on the sale of used cars. Take the finance industry for example. When people buy cars, they generally apply for an auto loan. A decrease in car sales will reduce the number of people applying for loans and hence, the whole credit industry will suffer. But with the used car market in play, the volume of loan applicants rises as now both new and used car buyers bring business to financial institutions.
Lastly, the angle of a car being your asset also counts. Again, without used car dealers, you cannot retrieve the monetary value of your car at times of need. In the absence of a dealer who you will buy your car, who will you sell to. The car will soon become your liability and stall your life where it is. Thus, used car dealers are vital elements of the entire American economy.
Used car dealers – a lifesaver
When a particular industry thrives, an entire nation thrives. And the automobile industry sits at the heart of the US economy. Used car dealers act as those channels where cars find their right use during their lifetime. They allow people to upgrade, enable automakers to come up with something new every year and expand the entire industry to accommodate various types and trims. Today, you can drive a luxury car by leasing it just because there is a used car dealer who can sell the vehicle after your term period. You can buy a quality truck at half its market price as there are dealers who buy that vehicle from a seller who has no use for it anymore. The sector’s absence is not an option. In fact, its growth is evident.
Authentic used car dealers like Family Auto of pickens is keeping the niche alive. Consumers continue to get what they want because of such dealers. When you buy a used car, you are actually feeding a complex economic chain and used car dealers are where the process starts.