Auto Trend Update

A new year is here and we look at new trends within the auto industry. Although it will be years before we handle junk car removal of new cars, it’s good to look ahead. We pay cash for scrap cars and offer sellers a price for scrap cars along with about 25 other scrap yards that buy cars in Summit County. Joann Muller with Forbes released an article titled ‘5 Big Trends Driving the Auto Industry in 2015’ that featured the following highlights: “The U.S. auto industry is looking forward to a strong 2015, with sales likely to top 17 million units. A better economy, rising consumer confidence & easier access to credit have created ideal market conditions to put the 2009 crisis firmly in the rearview mirror. Here’s a look at five big ones (trends):

1. More subcompact SUVs–like the Jeep Renegade, Honda HR-V & Mazda MX-3. Tiny but flexible crossovers targeted at young, urban explorers. Demand among U.S. buyers is uncertain, but these compact SUVs have huge global potential.
2. Competition in the pickup truck segment, with the 3 big U.S. automakers vying for supremacy in both performance & fuel economy. Both Toyota & Nissan launching new pickups in 2015.
3. In-car technology is becoming a major buying consideration. Automakers are redesigning their infotainment systems to make them safer & easier to use. Ford is dumping its ‘MyFordTouch’ system in favor of easier-to-use technology.
4. Gas prices aren’t the concern they used to be, which is why sales of high-performance sports cars like the new Acura NSX & Cadillac CTS-V should pop this year.
5. Even with falling gas prices, carmakers are experimenting with new powertrain technologies to meet new laws on fuel economy. Honda has a new FCV fuel-cell concept at the Detroit auto show, while Toyota will start selling its Mirai fuel cell vehicle in CA.”
   The complete article is available at this link: http://www.forbes.com/

Reflecting on this article, a few questions arise to me:

• Is the new in-car technology is necessary? The majority is “copy-cat” that overlaps with what our mobile devices do already. Gimmick type technology evolves very quickly and if its development & implementation results in higher car prices, it could negatively affect sales. Also, the recent emphasis on reducing distracting driving may be contrary to the upswing of in-car technology & increase accident potential.
• Per Truecar.com, the average US new vehicle transaction is $30,000+. Is this good or bad news? Let’s assume a 5-year loan on a $30,000 car. This scenario shows a $500 auto payment for a term of (60) months, which doesn’t include interest; therefore, we will estimate the payment of $530/monthly. At $530/monthly, we then add full-coverage auto insurance (required on financed vehicles) which based on the value of the car, is likely $70/monthly. Next, add costs of fuel & maintenance which we’ll estimate to be $90/monthly. The result is a monthly expense of $700. Annual US median household income is about $50,000, which equates to $4100/monthly making the $700 payment 17% of income. The problem is this: $4,100 is the household’s gross pay and net pay (take-home) is likely $3200, thus the $700 of auto expense becomes 22% of monthly income. More importantly, this is based on household income, which potentially means that both husband & wife (for example) could have $700/mo. in auto expenses. $1400/monthly is over 40% of the monthly income in this example, which is a dangerous recipe for potential default.

Looking to get cash for scrap cars? Our junk car removal service will provide a price for scrap cars that is competitive among the scrap yards that buy cars. Get cash for scrap cars in Barberton, Bath, Clinton, Cuyahoga Falls, Fairlawn, Firestone Park and Norton.  Is your damaged car at a repair shop in Monroe Falls, Peninsula, Tallmadge, New Franklin or Wadsworth in need of costly repairs? Get a price for scrap cars today and junk car removal in Silver Lake, Copley, Coventry Township and Springfield Township by calling 330-271-6464 today.