As automotives continue to advance on the daily, practically, it sometimes seems impossible to keep up! We’re going to attempt to wrap up the latest in the Automotive Industry in this article, by breaking it down by new and used cars, what’s going on in car dealerships around the world, and how car wrecker companies have changed.
For those of us on the market for a brand new car for sale, the options are amazing this time of year. The biggest trend we’re seeing is a wave of new electric cars, as car dealerships are looking to keep up with the advancing need and desire for more eco-friendly vehicles. One model that we’re most excited for is the electric version of a Mini Cooper. This classic vehicle has been around for generations, and continues to be an incredibly popular car. You won’t have to worry too much about car dealer financing, as the affordability means many people can own it without breaking the bank. Plus, in the future, finding a second hand car dealership to take it off your hands will be simple, as resale value is great on a Mini, and it remains a popular car throughout the years. Here’s some more information about the new electric Mini to see if this is the right new car for you.
Many luxury brands are also looking to release their version of electric cars, including Audi, Mercedes and Porsche. While at a much higher price point, the brand’s stability and appeal will ensure that luxury brand drivers will soon be sporting electric cars on their driveway as well. It’s apparent that most car brands are on a race to create their version of e-vehicles to keep up with the rising demand. We look forward to hearing more about what each brand will bring to the electric vehicle table.
Uncertainty in places like the United Kingdom due to Brexit have left to a decrease in new car sales, but an increase in used and cheap cars, as customers are unwilling to part with large sums of money when the market is unclear. While used car supplies might be dwindling in some areas, for the most part the used car side of things is booming. The biggest upswing has been in the turnover for used cars, with sales growth up 3% in places like the United States.
Dealerships continue to suffer across the world for multiple reasons. For one, car subscriptions continue to be on the rise, with more millennials and Gen Z-ers looking to hire cars at an ad hoc basis rather than owning one themselves. Even getting a driving license is on a decline, with less young people caring about getting the drivers license at a young age and instead often waiting until their 20’s to get it. This is in part due to Uber and other taxi services that are often cheaper than a monthly car payment, as well as rising driver’s ed or tuition fees, license fees and insurance fees.
Car dealerships would do well to embrace the changing way we drive, and by offering their own car share or car subscription service that is competitive with others out there. Car sharing is another very popular option for drivers who aren’t looking to purchase right now, and only need a car on an occasional basis. For example, people looking to move flats or purchase a large item from Ikea would only need a vehicle on perhaps a monthly basis, so this service works really well for them. This type of service is becoming extremely popular in dense urban areas, where it’s often hard to find a place to park a vehicle or there are high costs associated with driving a vehicle in the city, like New York City.
This tailored approach to consuming is popular not just in the automotive industry, but in almost everything we do. With an app for nearly everything, including hailing a cab, we’ll continue to see this trend rise in automotives.
Where car dealerships are seeing an increase, however, is on leasing. This again goes back to perhaps a desire to not be tied down to a depreciating asset, or concern in having a long term investment. Cars are notoriously a dreaded depreciating investment, with brand new cars depreciating as soon as you drive it off the car lot, and losing up to 50% of value in the first few years of ownership. In the UK, car leasing enquiries are up by 70% since 2017, so it’s clear that car dealerships have their work cut out for them with advertising and improving their car leases.
Car wreckers and salvage yards are also seeing technology increase in their business. For example, when cars come into the auto salvage or wrecking company, technicians used to have to catalogue the vehicle by hand, looking at each individual part and checking it against a master inventory that they’d likely have to print with each new car. Now, much of this can be done in a computer programme which can be edited as you take stock of the vehicle, and the entire inventory of the vehicle is entirely searchable, instantly. Photos can be uploaded on the same programme, and can be taken from right from a tablet or other mobile device that you’re completing the inventory on.
As far as sales go, car wreckers are seeing steady profits across the world, as salvaging continues to be popular and has not been hit by any massive declines. People are still looking for things like old motorcycle tyres to fix up their vintage Harley Davidson, and will continue to do so for a while.
This is just a taste of what is happening this month and the trends that we’ll be seeing for years to come in the automotive industry. Until next month, drive safely!