The impact of recession
High oil prices, strict credit terms for auto loans and shrinking incomes resulting from the latest financial downturn have affected the auto industry. Two major impacts of a sluggish economy on the auto industry are:
1. Lesser spending power for the purchase of new cars, and
2. Greater availability of used cars as many car owners disposed-off these
It is easy to see how the above could lead to an increased demand for used cars. In fact, demand and supply shifted from the brand new car market to the used car market.
As the economic recession paved the way for increased demand and supply in the pre-owned vehicle market, a need was felt to do away with the restriction of allowing only licensed dealers to take part in the used car auctions. It was only a matter of time before some resourceful brains came up with the idea of online bidding that is free for all. The highest online bidder is represented by the auction company at a live auction and tries to win the car at the minimum possible value.
Some reputed online salvage car auctions feature thousands of salvaged cars from across the country, representing hundreds of auctions. This makes it delightfully convenient for people looking to buy a salvaged car to browse through a wide selection and bid on one that they like. This trend is all set to grow in magnitude as more and more used cars become available for interested buyers.