Auto sales saw a nice growth in the year 2011, and that growth has continued to rise into the year 2012. In 2011 auto sales rose by as much as 10%. Auto shipping companies also saw a steady growth for much of 2011, and that growth has continued into the year 2012.
What is selling
There are two things that have really surprised auto dealers in the past two years. One of them is the amount of used cars that are being bought and sold.
New cars used to account for as much as 90% of a new car dealers total sales for a given year. In the past two years that number has drastically been changed. Used cars have accounted for as much as 50% of all auto sales at new car dealerships. This has led new car dealers to make some serious changes in the way that they do business.
One of these changes is for the new car dealers to start buying more used cars. This means that they are paying more for used car trade-ins, and it also means that new car dealers are spending more time at the local auto auctions. When the auto dealers purchase used vehicles from the auctions, they rely on auto transport companies to deliver their new purchases back to the dealer’s lot.
The current state of the economy is the reason that more people are purchasing used vehicles over new ones. Not everyone can afford the steep prices of a new vehicle. In many cases, a used vehicle can cost as much as 2/3 less that a new one, and most of the used vehicles come with a warranty and that new car smell.
There is a another trend that has seen a massive rise in the used car industry. More and more people are getting rid of their massive fuel consuming monster vehicles, and trading them in for much smaller more fuel efficient vehicles.
Car dealers who have noticed this trend early on, have started raising the prices on these smaller more fuel efficient vehicles. This may seem like a rather unfair practice, but the auto dealer gets to decide how much they want to charge for a vehicle. It is something that is known as supply and demand.
The high cost of fuel is what is fueling this new trend. Driving the larger vehicles has gotten too expensive, and for most people, the cost of fuel is breaking the bank. The smart alternative is to pickup a used more fuel efficient vehicle to get from point A to point B. What you save in gas charges, you will pay in an increase in price in these smaller more fuel efficient vehicles.
This is good news for the auto shipping industry. They can fit more of these smaller vehicles on one auto transport truck. It allows them to make more money with just one shipment, and in many cases they pass on the savings directly to the consumer.