State of Used Cars in the US

State of Used Cars in the US Name of student Name of institution Name of instructor Course Date due State of Used Cars in the US The recent recession seemed to have affected the US auto industry, until now when the market is recovering. The recession, which subsided in 2009, affected many industries, including automobile manufacture in the US. This meltdown was so bad that it almost finished major car manufacturers in the US. (Charger, 2013) The major car automobile companies in the US, otherwise known as the Detroit Three, are Ford, General Motors and Chrysler. As 2013 progresses, some factors in the car industry might affect how the industry plays out in the United States, as this essay will highlight. On top of the list of these factors is the price of used cars. Used vehicles currently dominate the recovery from the recession in the American automotive industry, if the prices of such vehicles are anything to go by. According to McAlinden S.P., the US automotive market has posted three consecutive years of double digit improvement in percentage (2012). In other words, Americans have bought more cars than they did during the recession, and this was expected. The most interesting thing about this observation is that the market for used cars is more than that for new cars. Why are people more willing to buy used cars than new ones? Normally, more sales of new cars in the US would lead to increase in sales of used cars to as well. However, this is not the case as the number of used cars is not enough for the current demand. The Wall Street Journal reported that the number of used cars is not enough to cater for the current demand (Ramsey, 2013). What are the factors that have contributed to the recent popularity of used cars in the American market? Firstl...