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Learn more about the Auto Business

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The Auto Business is HUGE!
In the United States alone there are over 25,000 new car dealerships and over 50,000 used car dealerships! That represents more then 50 million vehicles that are sold each year. Every vehicle is sold once as a new vehicle and at least 3 times as a used vehicle. Have doubts? Well just start by checking it out in your neighborhood! Just count the number of new and used car dealerships within a 50 km radius and then consider the number of cars on their lots. The average dealership turns over its inventory every 60 days!

Think about it, there has really never been a better time to consider buying a used car instead of a new one. The record number of new cars and trucks sold by auto makers in recent years, fueled largely by extremely attractive rebates and low- or no-interest financing, has created an overabundance of used cars. That gives the used-car shopper a lot of choice in vehicles. This flooded market also means depressed prices of used cars bad news for new-car buyers trading in their old models but good news for bargain-hunting used-car shoppers. Further, an increasing number of certified pre-owned car plans have cropped up in recent years to provide consumers with peace of mind when it comes to buying a used car.

Benefits of Buying Used Car

Increased Selection - The automotive market both new and used has been booming during the last decades. New vehicle sales totaled 16.6 million units in 2003, making it the fifth consecutive year above the 16.5 million mark. Between 1997 and 2003, more than 115 million new cars and light-duty trucks were sold. The used-car market was even more vibrant, setting a new record of 43.5 million sales in 2003, according to CNW Marketing Research. The result is a vast choice in used cars and attractive prices.

Improved Reliability - Although used vehicles typically don't carry the same warranties as new ones, the original factory warranty on a new car is transferable to a second owner, usually at no charge. Buyers of certified pre-owned cars from an authorized dealer can purchase a late-model used car with the original warranty and then choose to add to it. The combination of a glut of late-model used vehicles, the greater reliability and durability of vehicles, and the availability of warranties make buying a used car less of a gamble.

Like new condition - : Another trend that makes buying used a better option is the proliferation of certified pre-owned programs. The idea started with luxury brands such as Lexus and Mercedes-Benz. Today, most manufacturers have instituted these programs. Sales of CPO cars have increased from 452,829 in 1997 to 1,375,000 in 2004, according to CNW.

If you've decided to buy a used car, you've already made a smart decision. You can get a car that's almost as good as a brand-new one, without suffering the depreciation that wallops new car buyers as soon as they drive the car off the lot. Used cars even those that are only one year old are 20 to 30 percent cheaper than new cars. But there are other good reasons to buy a used car:

• Buying a used car means you can afford a model with more luxury/performance.
• You'll save money on insurance.
• The glut of cars coming off lease makes finding a near-new vehicle, or "cream puff," easy.
• Bigger bargains are possible for the smart used car shopper. Furthermore, the classic reasons to avoid used cars lack of reliability and the expense of repairs are less of an issue. Consider these related thoughts:
• Used cars are more reliable today than ever before
• Some used cars are still under the factory warranty
• Most new car makers now sell certified used cars, which include warranties.
• The history of a used car can easily be traced using the VIN number.

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