The Future of Buying Used Cars

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Where things are today.

An amazing shift is happening in auto buying. Look at how much has changed in just the past five years. How you search for and buy a car is an extremely different proposition than it was just a few years ago. It used to be that the only option to buy a new car was to visit a dealership and go through the hazing ritual of negotiating a price that seemed to keep shifting as the day in the dealership went on and on.

 

Once a price was agreed on, then the dreadful task of entering the Finance and Insurance Office took place in which the upselling of a number of different options were explained to you in great detail. These might include an extended warranty, lifetime engine warranty, GAP insurance, paint protection, upholstery protection, theft deterrents, wheel protection, prepaid maintenance, and so on.

 

After all these extras were decided on, you would proceed to sign more contracts than when you buy a house. But today, you can search for a new or used car online, saving valuable time and do it from your home or anywhere on your laptop or smartphone. Once you read up on vehicles that meet your specific needs, you can decide on the year, make, and model of car you want to buy.

 

Having narrowed your search, you can also get preapproved for the price range of the vehicle you are looking for. If you use a service such as Driveway, you can find your new ride from many thousands that are available and purchase the car online without ever setting foot in a dealership.

 

Such services allow you to buy, sell or trade cars online and Driveway will even deliver the vehicle right to your home or office. I purchased my last used car through Driveway and was very impressed with the entire experience. It makes buying a car quick, easy, and hassle free. But the future of buying used cars is about to get even easier.

Where things will be tomorrow.

The future of used car buying will continue to refine and shift search and purchase methods increasing customer options to provide remarkable solutions to all your personal transportation needs. More and more buyers will use digital purchasing methods to handle all aspects of buying, selling, and trading right from your smartphone.

 

The used car market is growing by leaps and bounds. Consumers are discovering that they can buy a more expensive luxury sedan, SUV, or truck in the ever-growing used market. These are quality vehicles that are just a few years old and have already depreciated. Today's vehicles are built to last much longer than cars 20 years ago. It is not unusual to rack up 300,000 miles on many of the cars on the market right now.

 

According to PRNewswire, the worldwide used car market will reach $2.67 trillion in sales by 2030, and many of those used vehicles will be highly sought after hybrid and all-electric cars. While many consumers have put off buying a new EV due to higher cost, a used Tesla (for instance) can be a real bargain, giving you a high-end luxury electric vehicle for a fraction of the new vehicle cost.

 

We believe that advancements in technology in hybrid, plug-in hybrid, and all-electric vehicles will cause a surge in the purchase of used fuel-efficient cars in the coming years. Certified used car programs will aid positive sales at car dealerships and the growing use of online shopping will create more transparency between selling services and buyers.

 

This transparency in every aspect of the sale will grow trust in buying a used vehicle. As we move toward the acceptance of hybrids and EVs in the marketplace, more consumers will likely use plug-in hybrids as a gateway to going fully electric.


At the dealerships, many car buyers today prefer to find their next vehicle online on a dealership's website, then go to the dealership for a good, old fashioned test drive of the car. Dealers will offer most of the buying process including contracts and F&I choices online as well.

 

Many dealerships are completely revamping their websites to make finding and purchasing a new or used car easier than ever before. In many cases, the buyer only needs to go to the dealership to complete the sale and pick up their vehicle. In the coming years, eCommerce options will continue to be refined, following the journey of car buying from beginning to end.


Future Trends in Buying Used Cars

Digitally generated leads will continue to gain traction, with more car sales taking place entirely online. Brick and mortar dealerships will continue to amass used vehicles and offer delivery to wider areas. Data analytics and AI will enable a new world of non-banking financial institutions to enhance the underwriting process to offer loans in an efficient and streamlined manner. This will be important as the used car market continues to grow.

 

We will see more multiple car manufacturers and used car dealers springing up to supply the demand. Advances in Internet connectivity worldwide will make it easier for people everywhere to sell their cars and find used cars online. This means the search for your next car will continue to be broader and more diverse.

 

With the cost of new cars continuing to rise, the pre-owned market will be stronger than ever. The demand for compact crossovers and SUVs will continue to be very strong and hybrid gasoline/electric used vehicles will be strong sellers for the foreseeable future.

 

The Used Car Market in America.

The used car market in the United States is larger than its new car market. According to IBISWorld, the used car market in America this year will bring in $181.2 billion dollars and over 40 million used cars are sold each year.

 

Car dealerships support new and used car sales with ongoing service and maintenance, recondition certified pre-owned cars, and drive profitability through the entire vehicle lifecycle. New marketing tools help to connect a wider range of customers with the vehicles they want and advances in online technology allows more and more buyers to find and purchase their next car online. The growing use of social media and engaging websites to market used inventory helps to foster long-term relationships with customers, encouraging ongoing business, creating customers for life.

Future Used EV Sales.

As we mentioned, used hybrid, plug-in hybrid, and all-electric vehicle sales will continue to climb, with Governments offering incentives for used fuel-efficient vehicles. Used EVs will be more affordable for lower income families and help the switch over to electrification.

 

Dealerships will play a big part in the adoption of EVs, supplying onsite charging stations, service, and specialized EV tires sales as well as services to help consumers get Level 2 charging installed at home.

 

Beyond Tomorrow.

Looking farther ahead, when autonomous vehicles become the order of the day, we will likely see cars that drive you to work, then return home to take the kids to school, then do the grocery shopping that you ordered online, before recharging or going in for service at the local dealership. These four-wheeled butlers may even simply be available on call, as they are needed, through vehicle subscription services. But all that is still more than a decade away… or is it?