Orange County Based Get My Auto Issues Bold Statement: Used Cars Are Killing New Vehicle Sales
New vehicle sales are in decline and according to Orange County based automotive site Get My Auto, used cars may be responsible.
Orange County, CA, September 22, 2016 (Newswire.com) - August sales data has arrived for the car and truck industry and the news is not exactly positive. According to The Street, sales in August declined by 4.2 percent, indicative of a broader trend that has found fewer and fewer consumers venturing into new car showrooms.
The sales erosion has been especially pronounced in the sedan segment, which has declined at a disproportionate rate. In fact, trucks are essentially keeping the industry afloat. Orange County based Get My Auto, a publication devoted to all things automotive, has released a new statement to the press, commenting on this sales data and offering a bold explanation.
“New vehicle sales are in decline—but the question is why,” comments Get My Auto. “Our analysis is that fewer consumers are buying new cars because more consumers are buying used cars. While the price point on new cars rises year after year, the value of a used automobile is steady; pre-owned vehicles can offer tremendous reliability for a fraction of the original sticker price.”
There are other potential factors in play. “With today's gasoline prices relatively low, consumers aren't averse to switching to SUVs and crossovers, which once were penalized by lower fuel efficiency due to greater weight,” says the report. “But many of the newest SUVs and crossovers are based on car architectures and carry little if any penalty, in efficiency terms.” An additional factor is that crossovers and SUVs have lost much of their “family car” stigma among young consumers who are searching for something practical.
In the future, auto manufacturers will likely spend more money on crossovers and SUVS. As for sedans? “For consumers, buying a sedan soon may become more costly, as automakers withdraw the discounts and incentives that they have been using to try and keep the segment viable,” says the report.
“That strategy may backfire,” concludes Get My Auto. “What we are seeing is that consumers don’t want to pay those astronomical prices—and if new vehicles, especially new sedans, continue to grow costlier, used vehicles will just become that much more appealing.”
About Get My Auto
Get My Auto of Orange County is an informational website about used vehicles. Its aim is to educate consumers about their pre-owned vehicle choices. Content on the site includes automotive reviews, cost data, and general tips about seeking out and purchasing used vehicles.
More information can be found on the Web at www.getmyauto.com. Get My Auto is headquartered in Orange County, California. Additionally, Get My Auto can be contacted at: 17901 Von Karman Ave., Suite 667
Irvine, CA 92614, or reach by phone at 949.408.3264
Source: Get My Auto