Impact of Consumer Demand and the Resale Value of Cars and Trucks in the United States in 2008 and 2009.

On December 10, 2008, Automotive Lease Guide (ALG) releases its Automotive Consumer Studies. The report provide insight into vehicle demand in 2009 and how each vehicle brand holds up against each other in terms of resale value and quality score.

Among the highlight of the report are as follows:

VEHICLE DEMAND
Vehicle demand for 2009 is expected to drop significantly, judging by the drop of around 30% for 2008 (until November 2008).

In a recent survey, 64% of respondents intend to purchase a used or new car but the budget for such purchase has fallen.

The recent rise in gas prices have significantly impacted the driving habits of the lowest income group in the country compared to the medium and high income earner.

As much as 70% of respondent feel that the high gas prices have changed their decision on the type of vehicle they decide to purchase.

Concerns about recession, high gas prices, stock price and home prices do impact the respondents decision on their next vehicle purchase plans

VEHICLE RESALE VALUE
In the used vehicle market, only 5% to 10% of the vehicle’s resale value is tied to the actual quality score of the vehicle.

Strong Branding of vehicle is equating to vehicle quality over a long period of time.

Quality of vehicle is based more on perception derived from consumers’ belief, advertisement medium, recommendation from friends and family and consumer perception from recalls made by vehicle manufacturer rather than the actual physical measurement of the vehicle quality.

The Top 20 ALG Perceived Quality Score for vehicle brands are:

1)Toyota 2)Honda 3)Nissan
4)Subaru 5)VW 6)Mazda
7)Saturn 8)Mini 9)Ford Trucks
10)Buick 11)Mitsubishi 12)Chevrolet Trucks
13)Scion 14)GMC 15)Chevrolet Cars
16)Ford Cars 17)Mercury 18)Dodge Trucks
19)Smart 20)Hyundai

Note that the domestic brands occupy the lower rung of the ranking apart from the mostly Korean made vehicles. The report is in line with the current economic outlook. With the Big three automaker still facing resistance for a bailout from the lawmaker, it is impacting the economy and the job market.

The potential fall-out of the Detroit car industry is not because of a lack of automotive ability. General Motors and Ford are very good at producing cars. Both of these cars manufacturers have thriving and profitable overseas operations, manufacturing and marketing cars based on local designs and facilities.

Their problem lies in the North American market especially the cost structure that has evolved with its unions and to make matter worst, the impositions by regulators. The American manufacturers are not competitive in their home market but they are extremely so in Europe and China.

The unknown effect on the US economy of an auto industry bankruptcy is its greatest threat. It is in my opinion, the main reason the big three will get their loans. If the Detroit factories close, there could well be unforeseen consequences. A continued well publicized potential bankruptcy of Detroit carmakers could continue to undermine the US recovery.

Where to Find the Best Deals When Searching for On-line Used Car Auction

If you are looking for a used car, truck or motorcycle in the United States, you can save a lot of money buying on internet auction site. There are obviously many websites offering used vehicles at competitive prices and sometimes very good offers that you can’t refuse. However, be cautious with such deals because it can be very misleading when making purchases or bid without checking the background of the websites and its offering. Have an independent mechanic check on the vehicle physical condition and make sure the photo matches the vehicle that has been advertised. Since most internet auto purchases require that you place certain deposit for the vehicle, you should always have a check-list prior to making such deposit to ensure the deposit that your deposit is safe. A checklist should give you some pretty good idea whether you should proceed with the transaction or risk losing it should it turn out that the deal is offered by unscrupulous Seller or a non-existence deal.

Does the website offered any protection should the Buyer purchased a fraudulent or faulty vehicle? In the event payment has been made for the vehicle and what is the protection for the Buyer should the Seller failed to deliver the vehicle? After the vehicle was paid for and received by the Buyer, is there any protection for the Buyer should the vehicle have other faults? For example, what if the VIN number does not match the vehicle, if the Seller failed to disclosure major damages to the vehicle as advertised or if the Seller deliver a different vehicle from the one originally advertised. What if the vehicle you purchased is a stolen property?

Does the website offered any auxiliary services such as haulage, insurance and vehicle loans offered by third party arranger? What about vehicle history report to determine the historical condition of the vehicle? Having such complementary services adds credibility to such website and reduced the possibility of fraudulent activities.

For the best deals give Motoring Discount a visit at http://www.MotoringDiscount.com/ - a popular host for Real-time internet auction of U.S. and Foreign made cars, trucks and motorcycles. You will find thousands of vehicles available for sale and auction at hugely discounted prices. Some of the vehicles have a starting bid of just $200!