Why Start A Car Business?
The Auto Market is HUGE! In the US there are over 21,000 new car dealerships and over 50,000 used car dealerships! That represents 50 million vehicles each year. Every vehicle will be sold once as a new vehicle but 3 times as a used vehicle.
Check it out in your neighborhood! Just count the number of new and used car dealerships within 45 miles. Count the number of cars on their lots. The average dealership turns over its inventory every 56 days!  [more]
Dealers Spend Money to sell cars! According to NIADA the average dealership spends $426 to get a pre-owned car ready to sell. They then spend an additional $375 in advertising to bring ONE customer to the store!
Benefits of Buying a Used Car
There are several good reasons to consider buying a used car, including ample selection and the improving reliability of older cars. But the main attraction for used-car buyers is still affordability..
Advantages of New and Used Cars
It's hard to remember when there has been a better time to consider a used car instead of a new one. The record number of new cars and trucks sold by automakers 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.
The 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.
In the end, the decision to buy new or used boils down to what you can afford and what will give you peace of mind.
If you're on a tight budget, then buying a used car gets you the most vehicle for the least amount of money. You can count on one hand the number of new cars that list for less than $10,000. That buys you a tiny car, probably with two doors and certainly with a manual transmission instead of an automatic, no air conditioning, a lack of safety features (antilock brakes, side-impact airbags, etc.) and few other common amenities.
The Case for Buying Used
increased choice: The automobile market both new and used has been booming in recent years. 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.
improving 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.
just like new: 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 carmakers 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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