Public Vehicle Auctions Squeezed For Cars

By [http://ezinearticles.com/?expert=Carl_A_Lee]Carl A Lee

Public vehicle auctions often take on a new lease of life during recessions or when there's a stiff lock on finance, a freeze or credit crunch or whatever you like to call it. What appears to be happening is an overall increase in used-car prices at this moment in time. Used cars are being bought by those who really, really need a car and simply cannot fund dealer prices and finance terms.

Layoffs and redundancies herald a new generation of unemployed job seekers and it's often the case that chances of employment are totally dependent upon transport. In the past, auctions have been thought to provide a stop-gap in the vehicle marketplace for those hard pressed for cash. The latest news from the auctions is not so good for the newly impoverished.

The auction rooms have traditionally drawn their supplies of cars via the dealers who bring in cars traded-in as part of the exchange on new or near-new cars in the high street show rooms. Where there's a slump in the new car trade as a result of the finance squeeze, there's a slump too in the number of trade-ins filtered through to the auction rooms. The auctions also bring in former fleet cars, but as corporations also feel the pinch, they're making savings by hanging onto the car fleets longer.

What is seen to be happening is an increase in numbers of those looking for a bargain at auction and a decrease in the availability of used cars. The consequence is a rise in price around used cars. A vicious circle develops and the cars coming into auction are far less desirable than before, yet with higher price tags. The insane financial dilemma of this squeeze is producing evidence that used cars can be priced higher than a new model.

We have reached a point of stalemate at the public vehicle auctions and in the used-car market with sales of second-hand cars often bring better prices than their new counterparts according to one news report. The report quoted a 2008 Honda Accord at $21,500 with the newest 2009 model of the same vehicle at $80 less. Finance companies are stretching resources to provide incentives to get the new car market back on its feet but the same news article reports new loan-price comparisons for new and used models where the new model deal beats the used by a couple of thousand dollars.

If you need listings of public vehicle auctions, visit http://www.cheap-cars-auctions.com

Article Source: http://EzineArticles.com/?expert=Carl_A_Lee http://EzineArticles.com/?Public-Vehicle-Auctions-Squeezed-For-Cars&id=2375046

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