Students considering enrolling in an auto mechanic program can look forward to working on plenty of used vehicles over the course of their career. As automotive technology advances, cars are lasting longer and longer. This means that instead of cars being tossed aside when an owner want an upgrade, they are put on the market and usually sold for a decent price. Aside from their improved quality, what else is contributing to the rising popularity of used vehicles?
Read on to discover three interesting trends that are leading to an increase in used car sales.
1. A Weak Canadian Dollar Is Enticing Americans to Purchase Used Vehicles in Canada
With the value of the Canadian Dollar currently hovering around 76 cents U.S., it’s no wonder Americans are flocking to Canada’s stock of used vehicles. That currency difference gives Americans an almost 25 per cent discount, allowing them get way more for their money by purchasing their car north of the border. According to DesRosiers Automotive Consultants, in 2015 around 200,000 used vehicles were exported from Canada to the USA. That’s a shocking rise from the 75,000 that were exported just a year earlier in 2014.
Ian MacDonald, AutoTrader.ca director of consumer marketing, attributes the rise to Canada’s weaker loonie:
“As the Canadian dollar has weakened more and more, we’ve seen the demand coming from the U.S. increase.” he explains, “It kind of moves in lockstep: the weaker it is, the more we see increases in traffic from the U.S. to our site.”
If the Canadian dollar continues to weaken or stay stagnant, professionals with an auto repair career will likely see even more used vehicles heading south of the border.
2. Pros with Auto Repair Careers May Know Consumers are Vying for Younger Vehicles
The amount of used cars being sold isn’t the only number going up—so is the price that buyers are willing to pay for a used car. In recent years there has been a trend in the automotive industry for used car buyers to seek out the youngest vehicle options they can find. That trend means that buyers of used cars are paying more and more as they purchase newer and younger models. In fact, from 2014 to 2015 the average price of a used car rose from $12,711 to $13,089. Students in auto repair courses may ask: Why are used car sellers increasing their prices, and why are used car buyers paying more and buying more? Simply put, it’s the price consumers have to pay in order to get their hands on a newer used car.
3. Pros with Auto Repair Careers May Know Used Car Businesses Are Improving
The fact of the matter is that the reputation of used car sellers has not always been positive. However, times are changing and used car dealerships are improving their business models by offering more transparency to buyers. This is leading to more buyers being open to purchasing vehicles from used car dealerships. In addition, there are plenty more options and platforms that buyers can use to search for and purchase used vehicles.
Websites like Craigslist and Kijiji provide a simple platform to buy and sell used cars, without involving a dealership. In addition, online-based used car dealerships have slowly been popping up. All of these platforms make it much more accessible for Canadians (and Americans) to purchase used cars.
Together, all of these trends contribute to an increase in revenue from used car purchases. According to DesRosiers Automotive Consultants, used vehicle sales are growing at a rate of 7.7 per cent. That’s a whole 3 per cent higher than new vehicle sales!
Are you interested in enrolling in auto mechanic school in Toronto?
Contact Automotive Training Centres today to learn more!