Trends in the used car market have ups and downs in the prices in recent several years due to the increasing demand for modernization. The wealth cycle is rapidly diverting towards the middle class as they’re going towards entrepreneurship and startups.
Around a 9% rise was seen in the old car industry during May; however, previously, it fell to 15% in April. It’s like heaven for the dealers who make big commissions on the used cars as compared to the new ones.
This industry is going to take-off within the next few years due to the introduction of electric cars. A dealer only makes $150 on selling a new model of a well-known brand and makes about $1100 in profit by selling a single unit of an old car.
The market is currently getting hot, and the competition is taking hypes as the days are passing. Just search for a dodge dealership near me and get excited prices within no time.
Here is a list of modern trends in the old market.
It’s a pipeline business because one needs nothing to start selling used cars. You might wonder, how is it possible?
Here comes the idea, a car dealer will get the ring by one of his known individuals who will tell him that he wants to sell his car and explains the current condition and his demanded price. Then the dealer will use his contacts and find a person who needs a vehicle in the same budget.
This is how they’re going into a deal without spending on office furniture and investing in the new cars. The gap between the buying and the selling price will be the profit of the dealers.
Better deals on lower prices
Price is the only factor that is the backbone of the second-hand car market. These dealers target price-conscious individuals and get the deal one by giving them a reasonable value at low prices.
One can get a good deal in case if anyone has sold his/her car to pay their bills or fulfill any accidental needs. This happens most of the time where the end-users may get more than what they pay for.
Big names will stay in demand
What decides that a particular brand is a big name in the market? It’s as simple as the water in oxygen. The brands that capture most of the market shares are the ones that lead to a particular industry. In the case of smartphones, Apple is considered an industry leader.
On the other hand, brands like Porsche, Toyota, Hyundai, and Mercedes-Benz are the brands that will remain in demand for used cars. It’s so because these brands provide value to be sustainable even if bought in used.
Future of the market
The future of the second-hand market is pretty bright as the buying power of many people has been increasing. Although they can’t afford to buy a brand new model of Ferrari or BMW they are capable enough to buy the used ones.
This market is expected to grow more than 15% annual rate after 2020 because of the technological advancements in the car industry.