Used Automobile Dealers Facing Tough Market Amid New Car Competition

Years ago, it appeared that purchasing a used automobile was a prudent and practical thing to do because it was much more affordable compared to acquiring a brand new vehicle. Fast forward to 2013, industry experts concur that used car dealerships are having a difficult time in this market as potential car owners are shifting towards new rather than used.
Speaking with The Nation in September, Somchai Trakulpirom, general manager of Master Certified Used Cars, noted that the used car industry needs to make adjustments in its business model and provide better offers than what is presently being offered by their counterparts.
The difficult market, for instance, is suggesting that consumers are buying because of the attractive promotions that are being listed, such as zero down payment, low interest, inexpensive bi-weekly or monthly payments and other special promotions - stronger offers are even expected as dealerships attempt to clear out their inventories.
Most of these heightened promotions have been running since the summer and have been fueled because of the federal government's first-car-buy initiative launched last year. Dealers are looking to build upon its new car sales growth it has been experiencing for quite a while now.
In addition, with the rise of smaller, smart cars, they're maintaining a price that is just as affordable as a superior, used vehicle model: the Chevrolet Spark LS is $12,995, Smart ForTwo Pure is $13,240 and the Nissan Versa S Sedan is $12,780.
Anuchart Deeprasert of the Thai Hire Purchase Association reported that finance lenders have found a 20 percent reduction in used car loans - other estimates suggest as much as 30 percent. However, the organization did say that it expects used car purchases to return to normal growth sometime next year.
Furthermore, used vehicles, according to Trakulpirom, consist of a depreciation rate of between 10 and 25 percent. This means bad debts equates to fewer loans and financial institutions are becoming fastidious in approving loans due to the large number of high rate of bad debts.
"For example, the first-car-buyer scheme, which at first looked attractive because of the increased production volume and cash flow, has been responsible for stealing future demand," Trakulpirom told the news media outlet. "Some buyers made purchases under the scheme to make a direct profit, while some buyers who would not be able to afford a vehicle in normal conditions are now facing difficulties in paying the monthly installments, and are allowing the vehicles to be repossessed by the finance companies, resulting in a large number of bad debts."
He added: "If finance companies have a large number of repossessed vehicles, they will be more careful with loan approvals and deny more applications. Demand for used cars is now controlled by financing requirements."
Last month, forecasters and analysts predicted softer prices and an enhanced used vehicle selection in 2014. This is due in part to the sheer number of eight- to 12-year-old cars that currently need to be replaced. Although most concur that prices of used vehicles will not plummet, it is believed that smaller and mid-sized cars will experience the highest price drop because of competition in that market base.
Nevertheless, with the Motor Expo 2013 gearing up, auto manufacturers and dealers may unite and increase its promotions, such as a low-down-payment offer for civil servants and state-enterprise officers as well as even a grace period.
The sales of 98,000 vehicles per month are surely an incentive for both manufacturer and dealer to persist in running these campaigns to draw in more consumers throughout 2014.

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Motorcycle Accidents: Knowing The Facts And Taking Precaution

From Marlon Brando in The Wild Ones, to Dennis Hopper and Peter Fonda in Easy Rider, there has always been a certain culture, image or mystique surrounding motorcycles. Ask any motorcycle rider what they love about riding and you will get answers like: I love the wind in my face, there's nothing like the feeling of freedom on the open road, it's the best way to see the country, the power and sense of speed is exhilarating, it's fun and it's an adrenaline rush. Some may even say, "It's the risk and danger of it."
Whether riding a tricked out Harley, a classic Indian or just a daily commuter, there is just something about cruising down the highway or zipping through town on a motorcycle. In today's economy of high gas prices, they can offer an affordable alternative when filling up at the pump. But there is also another side to motorcycles: accidents.
There is a saying among motorcyclists: "If you ride long enough, it's not if you're going to have an accident, it's when". And when those accidents happen they are far more likely to cause severe injury or death. Statistics show that on a per-mile driven basis, there are 35 times more deaths among motorcycle riders than automobile drivers. In Emergency Rooms, a dark term for motorcycles is donor cycles. That's a pretty alarming and the statistics bear closer examination, so let's break it down.

• 56% of motorcycle deaths involve collisions with other vehicles
• 78% of those deaths are from head-on collisions with automobiles or trucks
• 25% of motorcycle deaths involve hitting a fixed object
• 75% of motorcycle accidents involve the rider not properly negotiating a curve
• Half of all motorcycle accidents involve speed and/or alcohol

Here's one more statistic that may not be so surprising. "Super sport" motorcycles - the high powered machines that are built on a lightweight racing frame modified for street use - have a four times higher death rate than conventional motorcycles. These bikes can reach speeds of over 160 miles per hour and are most often driven by male riders under thirty years of age. Insane speed, plus testosterone, plus youthful, poor judgment can be a lethal combination.
Yes those are sobering statistics, but it doesn't mean anyone who owns a motorcycle should put it up for sale immediately or send it off the salvage yard to be crushed. There are ways to reduce the risk of becoming a statistic and continue to enjoy your two-wheeled fun machine. It just involves taking a few precautions and using a healthy dose of common sense.
First and foremost, protect yourself.

• Always wear an approved helmet - no exceptions! 37% of riders who died when not wearing a helmet would have probably survived had they worn one.
• Wear eye protection: face shield, goggles or sun glasses
• Wear protective clothing: full finger gloves, long pants, boots, and motorcycle jackets made of leather or other protective material. Some jackets have built-in padding and even body armor.
• Wear bright colors, even if it's just your helmet
• Maintain your bike
• Be aware of road hazards like pot holes, loose gravel, wet pavement and animals
• Take a safety class

Second, don't just pay attention. Be vigilant! Not everyone on the road is motorcycle conscious and not everyone out there is motorcycle friendly. Drive defensively and never assume other drivers notice or even see you. Remember, the widest part of you and your motorcycle is probably the handlebars. The most common comment made by drivers after a collision with a motorcycle is, "I didn't see it."
Finally, and it should go without saying, never ever ride after you've been drinking. Even a small lapse in reaction time or judgment can be disastrous - even fatal.
Motorcycles can be dangerous and are by design not as safe as being inside an automobile. But that doesn't mean they can't be a fun way to get around. Know the risks, protect yourself and always be alert and watchful. Like Steppenwolf song said, "Get your motor runnin', head out on the highway!" And always, be careful out there.

The Minnesota personal injury lawyers and attorneys of Sieben Polk in Minneapolis MN have successfully represented over 50,000 cases in Minnesota including litigation on behalf of motorcycle accident victims.