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Since the automobile was first introduced, sales of both new and used vehicles have grown each year, but with the current economic climate, many of the top companies are faced with a new reality, lower than average sales. This decrease in sales has prompted many changes in the industry over the past year.
The Big 3
General Motors®, Chrysler®, and Ford® have long been considered the big three in terms of sales and growth. All three United States based companies have seen their sales decrease in the last year prompting them to seek government bailouts and bankruptcy filings. While Ford® remains optimistic about its outlook, Chrysler® declared bankruptcy in the spring of 2009 and began selling off most of its assets. German based Fiat® is now the primary owner of Chrysler®. In the summer of 2009, General Motors®, the largest of the big three, declared Chapter 11 bankruptcy and has since been reorganized by the US government. This reorganization gives the government control of the company, while it attempts to pay back its debts and attempts to downsize dealerships and parts departments.
What This Means For Consumers
Many consumers have seen the financial crisis in the automobile industry impact their lives negatively. Many auto plants in the United States have been shut down or put on hold while the companies work to get their affairs in order. These closings have produced a high number of job losses in the United States and around the globe. The number of new car dealerships has decreased in recent months as well. In June 2009, General Motors® forced hundreds of dealers to stop selling their vehicles and many new and used car dealers to close their doors. The impact of this crisis can be seen in nearly every community. Once full, car lots are now empty, and many who used to specialize in new cars have shifted their focus to used models in order to stay in business. Since the bankruptcy filings, some used car dealerships have increased their sales; however, some are still struggling. Because of the lack of new vehicles for the coming model year, consumers are choosing to stick with their existing cars rather than purchasing used models. In taking better care of their cars, their investments will last longer, and the need for either new or used car dealers will decrease over time.
Tips For Buying Used
When it comes to buying a used vehicle, you can either get a great deal or end up with a horrible car that falls apart within months. To save some of the hassle, these tips should be taken into consideration. First, shop for used cars with a licensed used car dealer. The used car dealer often gets a bad rap, but most are competent. Consider how long the dealership has been in business and consult with friends for recommendations before using their service. Secondly, get the CarFax® report with the VIN number from a used vehicle, so you can check the vehicle history online with this used car dealer software. Several dealerships provide free CarFax® reports to ensure your used car meets standards. If the company doesn’t offer this used car dealer software, move on to a more reputable dealer or do the research on your own. The information provided shows whether the vehicle has been involved in an accident or has had any major damage in the past. Used car dealer software like CarFax® is inexpensive and worth every penny. Thirdly, check the Kelley Blue Book® price for any car you are considering. The KBB online site shows cars from private sellers and dealerships and what they are worth. It’s a good idea to consult kbb.com for all car purchases new or used. Avoid buying a used car sight unseen. Many people place older cars on eBay® for sale. Even though the seller may provide pictures, they might not be of the exact vehicle you are bidding on, or they may be several years old. Another good idea when buying a used car is to check out the warranty. If you are buying from a licensed reseller, you should get a basic warranty, or the existing warranty should be intact for the first year of ownership. Finally, don’t buy a used car you can’t afford. Work out in your budget how much you can afford monthly before agreeing to a high interest loan. Of course, if you have the cash, avoid the loan and those monthly payments if possible.
Links To Helpful Information
Even before the auto crisis, used car dealers were on every street corner. From the licensed used car dealer to the “buy here pay here mom and pop dealer,” not everyone provides the same level of service. Fortunately, there are a large number of dealership rating sites for new and used cars. These sites allow buyers to browse locally for the best deals and customer satisfaction ratings.
DealerRater – www.dealerrater.com – Dealer Rater lists more than 24,000 dealerships for both new and used cars. Consumers can read reviews or post their.
Car Dealer Check – www.cardealercheck.com – Car Dealer Check lists new and used dealers for all fifty states including the best and the worst. New dealerships are listed, and the most current reviews appear on the front page.
My Dealer Report – www.mydealerreport.com – My Dealer Report offers a wide selection of dealer ratings. Consumers can rank their experience based on customer service and selection. Dealers can also use the page to see what customers are saying about their service.
CarFax® - www.carfax.com – With this helpful site, buyers can access a full vehicle history report that includes title problems, ownership history, and accident history. Reports start at $29.99 each, and bulk orders can be placed as well.
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