The Used Car Industry in 2014

Every industry is influenced by what is happening around it. No business is an island, and the used car business is like any other. In the United States, while we are far and away from the dark economic days of 2007 and 2008 and in a slow recovery, things are still far from certain. Increasing confidence in the economy has lead to increasing levels of spending among the average American consumer. In May 2014 OEM carmakers in Detroit showed record car sales since the end of the recession here in America.  IN May 2014 Ford Motor Company had their best sales month since 2005, General Motors and Toyota had their best sales month since 2008. German luxury auto makers faired even better in the US market with BMW having the highest May sales in their history, along with Porsche and Audi who had their best sales month ever.  All other sectors related to the automotive industry are seeing record profits as well, including gas prices and insurance companies. On top of this the actual transaction amount for new cars rose an unprecedented 2%.

But where does this leave the used car industry? Well the new car industry and the used car industry are like apples and oranges. To understand the current situation of the used car industry you must first understand the last few years of the used car industry. Even during the recession when Detroit was tanking used cars sold very well. People who needed a car, their money already strained, more often than not purchased a used vehicle since it was less expensive. So this was the time to be a used car dealer. However the used car market wasn't getting replenished either since people with newer cars weren’t trading them in as often. The average vehicle on the road in the US today is a staggering 11.5 years old. Obviously at that age it isn’t of any use to most used car dealers. The cost to repair and maintain a vehicle at that age is just too high to be cost effective. Another thing that adversely affected the used car industry was the government Cash For Clunkers program. Cash For Clunkers, started by the Bush Administration during the darkest days of the Recession, paid anyone in cash for any older vehicle that they turned in no matter the condition. Obviously this got rid of a lot of the piles of junk cars here in America, but it took a good number of quality pre-owned vehicles off of the market and into the proverbial recycling bin as well.

So now used cars, and especially quality used cars, are a premium commodity and many used car dealers are struggling to get their inventories up to peak levels while keeping them competitively priced. But there are other things to worry about as well. With the recent safety recalls on massive numbers of vehicles in the United States there is a very real concern that some of the inventory that they currently carry is actually safe to drive. Currently there are no Federal regulations preventing someone from selling a used vehicle that has been recalled, but the demand for that is building. While a few unscrupulous used car dealers simply may not care about selling a recalled vehicle, many more are up in arms about unknowingly purchasing inventory that was faulty and then passing it along to the customers that they care about.

All in all, the situation for used car dealers is not ideal at the moment, but you do have one on your side. Crown Auto Sales and Finance has always and continues to do our utmost to provide the greatest and most diverse number of the highest quality vehicles at the most reasonable price. We only select good quality used cars with clean service histories and no recall issues. Our service team abides by the highest safety standards, whether they are endorsed by the Federal government or not. Every vehicle is inspected, tested, repaired, and maintained by our expert team of service technicians. It is then covered under our comprehensive Auto Sure warranty for anywhere from 6 to 36 months depending on the terms of sale. So if you have a problem with your vehicle that was of no fault of your own it will be repaired by us at no cost to you. Moreover, we have become extremely aggressive in our vehicle procurement process so that we may continue to carry the wide selection of over 100 quality pre-owned vehicles that we always have. No matter how certain or uncertain times may become, you know you can count on us for your next used car.