| Everyday, we are bombarded with newsflashes | | | | every potential buyer is looking for "value for money" |
| about the imminent bankruptcy of the Big Three U.S. | | | | purchases. Furthermore, it was also reported that a |
| Automakers. The fact remains very much in favor of | | | | potential car buyer increases their time for online |
| keeping our major automakers alive. All the | | | | research on used cars from 7.3 hours in 2007 to 8.6 |
| information in the marketplace points to one | | | | hours in 2008. |
| conclusive evidence and that is, the U.S. lawmakers | | | | The best places to search for used cars on the |
| intend to rescue the industry's Top 3 one way or | | | | internet are through on-line auction. They represent |
| another. | | | | the best value for money and you can always find |
| In the early 80's the Big three cars and trucks | | | | bargains when the Sellers are looking for a quick sale. |
| makers command just slightly below 80% share of | | | | One needs to put a little effort doing some simple |
| the North American market. Their declining market | | | | research on the current used car prices. You can look |
| share become noticeable in the early 90's and by the | | | | it up on Kelly Blue Book and other online used cars |
| year 2008, it has fallen to 48%. | | | | website. Once you have determined the make and |
| The market share represents one point of view | | | | model of your choice, you can start searching and |
| considering that in the year 1980, total US production | | | | bidding on-line. If you are one of the skeptics who |
| of motor vehicle stands at 8,010,000 units. It was | | | | remain sideline on the power of the internet and the |
| reported in Mercury News on Dec 12, 2008 that the | | | | on-line vehicle auction, you can always start by |
| combined vehicle sale in the North American market | | | | researching the background of the websites |
| reaches 16 million units per annum from year 2001 to | | | | concerned. The U.S. being a large and regulated |
| 2007. If the figure sums up correctly, 7.68 million | | | | consumer markets do offer Buyers some basic |
| annual vehicle sales represent 48% market share by | | | | protection whether buying on-line or off-line. With |
| the Big Three automakers. We can conclude that the | | | | millions of cars sold through online auction, this |
| percentage loss in market share by the Big Three in | | | | industry segment has come a long way and has since |
| 2008 is significant since the 80's but in terms of | | | | tightened its security and protection offered to the |
| production units, they more or less maintain | | | | consumers. |
| production quantity of the 80's with the remaining | | | | However, the level of protection offered by various |
| portion of the market divided among the smaller | | | | websites differs and one should conduct their |
| domestic auto firms. Another word, total vehicles | | | | research properly before making a bid or making |
| produced by the Big Three had basically stagnated | | | | purchases. Such advice applies to off-line purchases |
| since 1980. | | | | as well, especially when buying from used car dealers. |
| The combined number of best selling cars and trucks | | | | There are just as many complains dealing with |
| sold by the Big Three in the last 12 months, between | | | | unscrupulous car dealers and the risk of potential bad |
| October 2007 and September 2008 are as follows: | | | | deals still exist when dealing face to face with used |
| Ford Focus : 216,128 | | | | car dealers. In most cases, purchasing on-line and |
| Dodge Charger : 110,019 | | | | off-line is very similar in many ways as you can |
| Chevrolet Impala : 271,149 | | | | always view the vehicle, seek third party inspection |
| Ford F-Series : 541,961 | | | | services for verification purposes, with the exception |
| Dodge Ram : 272,785 | | | | that you will find cheaper vehicle from the online |
| Chevrolet Silverado : 510,900 | | | | auction as well as a wider choice of used cars for |
| The above best selling vehicles totaled 1,922,942 | | | | you to pick and choose from. |
| units. Should the Big Three failed, we can be certain | | | | With lower sales recorded by both new and used |
| that the other automakers including the foreign | | | | cars dealers this year, many have resorted to |
| brands will be delighted to make up for the vacuum | | | | offering special deals and discounts to entice would |
| left behind. Will the current lawmakers or the new | | | | be buyers. It is still a tough market and so far this |
| Obama administration be able to stomach a further | | | | year, 900 new car dealerships have close shop |
| slowdown in the already softening market by allowing | | | | including 121 in California. Similarly, used car dealers are |
| such large scale collapse? | | | | facing declining sales, anywhere between 60% and |
| This brings us to the used vehicle market. It is | | | | 80% and finding it difficult to maintain daily operation |
| common knowledge that the moment you take | | | | needs. With the price of gasoline peaking several |
| delivery of a new car from your local dealer, the | | | | months ago, car dealers are not selling as many |
| value of your car would have dropped and in many | | | | vehicles as they used to but now with the relatively |
| cases, quite substantially. During the current difficult | | | | low gas prices, the effect of the credit crisis with |
| period, it makes sense to switch your preference | | | | customers unable to obtain financing further fuel their |
| towards buying used cars when you sum up the | | | | demise. Such argument leads us to believe that online |
| benefit of buying used cars with cheaper insurance. | | | | auto auction will continue to flourish at the expense |
| Also, with cheaper value of used cars it means less | | | | of used car dealers. |
| bank loan is needed. The used car market is huge | | | | The move towards the growing online auction means |
| considering that the Big 3 has been in the market | | | | there are a potential long term shift in the way |
| since the early 1900 and some of the vehicles such | | | | consumer purchase their cars in the future. Used Car |
| as Ford Model- T produced during that period are still | | | | dealers that can withstand the current economic |
| traded in the marketplace today. In a report by JD | | | | situation is expected to emerge stronger. Cost |
| Power & Associates, 6 out of every 10 potential | | | | cutting and staff reduction is imminent and such cost |
| used car buyers end up purchasing their vehicle | | | | reduction are then passed down to potential buyer |
| on-line after researching used cars on the internet in | | | | by advertising and selling their stock of used cars |
| 2008. Despite all the reports that one should avoid | | | | on-line while competing with private car seller on such |
| buying used cars on-line, car sales conducted through | | | | auction site means even lower used cars prices for |
| the internet remain on the increase simply because | | | | potential buyers on-line. |