Increased Consumer Costs in US Automotive Industry

Under the Presidency of Donald Trump, the American Automotive Industry, and, by extension, the Canadian Automotive Industry is expected to take a hit over the next few years. According to a study recently published by the Indiana University, the industry itself is likely to experience a drop in both shares and profits in the foreseeable future as well as an increased unemployment rate, varying from company to company. Furthermore, the study concluded that if automotive regulations are not altered, U.S. consumers can expect increased costs in the purchase of premium vehicles as well as in fuel utilization.

American automakers, and those who have a vested interest in the automotive market in the United States, have called for the Trump administration to re-examine the rules that constrict their production standards and reform them to the reality of the market, with Mark Fields, the CEO of Ford Motor Co. threatening that over 1 million American jobs are at stake. His statement is directly in contradiction with the study by Indiana University, which claims that the unemployment rates in the U.S. should peak around 2021 at approximately 150 000 jobs, with a longer-term benefit of an increase of jobs by 2031. The study additionally states that current fuel economy and emissions targets will, over the long-term, cost customers a premium of over $1800 per vehicle by 2025. This also follows the trend that with the economy being what it is, consumers are looking to purchase less costly vehicles, opting for endurance over luxury.

John Graham, the co-author of the Indiana University study, entitles A Microeconomic Study of Federal and State Automotive Regulations, suggests numerous ways in which… One such example is for legislatures to consider cost-effective methods to phases out older vehicles, which would both increase profits for auto dealers while reducing GHG emissions, and to refine performance standards in order to make the entire industry more cost-effective for production and consumers alike. The study also makes it clear the responsibility for improvement does not rest with one party in particular but rather is something shared by analysts, legislators, and regulators, by giving recommendations for reformation to each of them.

While the study admits that there are some factors not examined in its contents, such as numerous environmental restrictions as well as an overall societal benefit, the study is clear that there needs to be an examination and a reformation in the auto industry which may seem detrimental in the short-term but will have numerous long-term benefits.

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Buying a Used Car

buying a used car

Whether you are an experienced motorist or a newly licensed driver, buying a used car can be a challenging experience. In some ways, it’s a gamble to purchase a previously owned vehicle –it can be difficult to know exactly how much road time a vehicle has had or to know its history of accidents. There are a number of horror stories that exist in the used car market, most of which feature unscrupulous sellers and automobiles that fail after a small amount of time. While some of these stories may be fictitious, it is increasingly important to make sure you have your wits about you when making a big purchase such as this.

Some common sense rules to keep in mind while shopping for a used car involve meeting your potential vehicle in-person. This means that you should make sure to avoid online-only sellers. When choosing a used car, it’s important to use most of your senses to examine it. You need to look at in-person (not just pictures) both inside and out: are there any obvious signs of wear, is the paint new (could mean it was recently detailed), suspicious stains, marks on the interior as well as exterior? What does the car smell like: is there a strong chemical scent, smoke, pets, oil or gas, cleaners? You want to feel to see if there are any scratches or tears as well as any sort of residue on the interior of the vehicle. Unless your plan is to sell the vehicle for parts, it is best to examine all aspects of your potential vehicle.

One of the main things you need to watch for is your seller. It can be pretty easy to tell when someone is trying to pressure talk you into buying a vehicle if you know what to look for. Listen for provocative language –if it sounds a bit like propaganda, it is. You also want to try and get a full history of the vehicle from the time the owners purchased it. Ask if they can provide paperwork, although not everyone will be able to. If the owners cannot show you a record of the vehicles history, ask them questions about it. Of course, if your seller tries to sidestep any of your questions or you get the impression that they are lying, it is best to refuse to buy the vehicle and leave. Furthermore, remember that when you buy a used car, you do not get a warranty. This means that once ownership of the car has been transferred into your name, if anything goes wrong it comes out of your own pocket.

As long as you remember to be warry and to trust your instincts, the difficulties of purchasing a previously owned vehicle can be side-stepped and you will find yourself with a quality car at a decent price.

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