In the United States, millions of vehicles that pass by roads and highways are used cars. And yet, many still don’t know much about them. These include the following:
1. There’s a Franchise for That
Americans can make money out of used cars, and they don’t even need to start from scratch. These days, they can invest in automotive franchise opportunities. Usually, it involves opening a used-car dealership. The franchise will help owners in many aspects of the business, from marketing to operations. They can also allow other forms of income, such as repair and maintenance.
Some options even provide in-house financing. It means potential customers don’t need to go to banks to apply for auto loans. The dealership can reduce lead turnover and also earn money from interest payments.
2. Used-car Sales Is Almost Always Higher than New Vehicle Sales
According to Statista, the number of registrations for new light vehicles reached 17.2 million in 2018. The United States also ranked second after China as one of the leading automobile markets in the world.
Despite these, sales for used cars often eclipse that of new vehicles. The infographic from Car Connection showed that annually the country sells about 40 million used cars. Compare that to not more than 20 million new units each year.
Many factors contribute to higher sales and volume for used cars:
- The country has more used-car dealerships than for new ones.
- On average, people change cars every five to eight years.
- Newer models these days tend to have longer life expectancies. The chances of multiple resales are high.
- Used-car exports are lower than new ones. In 2013, for example, the number of exported used units was fewer than 900,000. Meanwhile, the country sold almost 2 million new vehicles to other nations.
3. Not All Used Cars Are Appealing
While used cars are in demand, some models or brands can be more appealing to consumers. The Car Connection infographic provides comprehensive information. For instance, at least three used-car models sell well. These are Ford F-150, Chevrolet Silverado 1500, and Honda Accord in that order.
The list also tends to corroborate industry reports that suggest Americans prefer bigger vehicles than sedans or hatchbacks. In 2018, Ford, one of the biggest producers, announced an increase in SUV sales by over 6.5%. This is even if the entire industry was experiencing a decline. A Quartz report, meanwhile, believed that SUV sales would account for 50% of the total used-car sales in 2020.
4. Buying Used Cars Doesn’t Automatically Mean Paying High Insurance
One of the reasons why some avoid paying used cars is the supposed high auto insurance cost. Both don’t correlate all the time. According to Insure.com, older units of Ford, Honda, Jeep, and even Chrysler have an average annual rate of no more than a thousand dollars. Meanwhile, a person can spend over $3,000 of insurance coverage each year for newer models of Mercedes, Porsche, and BMW.
Many factors can affect a vehicle’s insurance rate. These include age, features, brand, model, use, and customer. Used-car units in excellent condition can still obtain a more affordable coverage than a brand-new vehicle driven by a teen or someone with a DUI charge.
Why is it important to learn all these? Used cars contribute to the country’s economy. They can open income-generating opportunities as well. Consumers can also make better decisions when they buy such units. Knowing is indeed empowering.