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.

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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.

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