US Vehicle News

How are sales of automobiles in the US? The National Auto Dealers Association (NADA) has a positive forecast for the industry. On November 17, 2014 Ryan Beene with Auto News has an article with the following highlights: “Continued economic improvement, low interest rates & cheap gasoline will help new-vehicle sales rise more than 3 percent to nearly 17 million units next year, the most since 2005, according to forecasts from the NADA. Rising employment and wages, continued low interest rates and lower gasoline prices all signal an increase in new light-vehicle sales in 2015 says Steven Szakaly, NADA’s chief economist. Sales obviously are not going to be as high in ’16, ’17 and ’18 and in those outer years because individuals are not going to be coming back into the market, Szakaly told reporters today. They’re going to be continuing to pay off these leases and these loans that are extending out five+ years. So we’re not going to see them come in as often. Stable fuel prices give consumers a lot of confidence, rightly or wrongly, that they can go ahead and move back up into a larger-sized vehicle, and there’s the fact that these vehicles are becoming more fuel efficient, Szakaly said.” To see the complete article visit this link: http://www.autonews.com/article/20141117/RETAIL01/141119859/nada-sees-2015-u-s-sales-nearing-17-million-vehicles

How does the slight increase in new auto purchases, combined with the sale plateau forecasted affect the scrap car removal industry? As a buyer of junk cars (aka scrap car hauler) will this have a positive or negative effect?  We feel that overall the scrap car removal market will remain about the same for these reasons:

• New vehicle buyers are extending their loans to 6 and 7 years because:

1. Higher costs for cars making the traditional 60 month loan unaffordable.
2. Most American’s do not save money and don’t have adequate down-payments.
3. Dealer sales practices of using “the low-monthly payment” method to close deals.

• The vehicle cost we use for scrap car removal will continue to increase; however, should be off-set by the savings on fuel, as crude oil has reached a depth of $75 per barrel.
• A scrap car hauler will typically experience inelasticity because the life cycle of a vehicle from new to used and then to junk is inevitable.
• We typically are contacted as a buyer of junk cars after the vehicle is 10 years old.
• Although vehicle weight continues to decline; the increased use of aluminum, which is of higher scrap value, will off-set the reduction in use of steel, which is heavier.

The bottom line is that those in the scrap car removal need not fear a decline. As an established buyer of junk cars in the greater Cleveland, OH area, our experience is that all vehicles will eventually reach end-of-life (ELV) status and as long as the total number of vehicles in the US is steady, the scrap car hauler will be in good shape. Cash 4 Cars Cleveland is a buyer of junk cars servicing Solon, Bedford, Twinsburg, Garfield Heights and Maple Heights. Selling a junk car in Cleveland Heights, Collinwood Lakewood or Parma? Call us at (216) 359-1010 today! Those looking to scrap a car for cash in Eastlake, Euclid, Chesterland, Old Brooklyn and Northfield should visit us at https://www.cash4carscleveland.com for a junk car quote, which includes free towing across Cuyahoga County including the areas of Mayfield Heights, Lyndhurst and Richmond Heights.