Does Used Means Cheap? – See what’s happening in the World of Japanese Used Cars Exporters and Traders at ST Louis

Japanese Used Cars Exporters and Traders

97High demand and short supply have work against Japanese used cars exporters and traders by making late-model used cars cost almost as much as brand new cars. A brand new Toyota Prius starts around $22,000 which might be a bitter reality for any cost-conscious buyer in this wicked economy and therefore it is reinforcing them to scout around used version.

But even a 3 year old version of the hybrid fuel saver costs almost as much, at about $20,000 according to the National Automobile Dealer Association (NADA).

Aftermath of recession is taking the whole blame of increasing prices and short supply of used cars all over the world. As the Japanese earthquake is puts crimps in the supply chain, the supply of new cars meanwhile is tightening and shutting off manufacturing of many new models. High prices of gasoline are making buyers hungry for low gas-sippers and hybrids.

A report from dealers association shows that prices on late-model used cars sold to the Japanese used cars exporters at wholesale auctions jumped 4% in March and they are up 12 % over the year 2010.

Japanese used cars exporters

Japanese used cars exporters and traders were experiencing used car prices even before the quake and recent spike in gasoline prices. A sharp decline in the Japanese used cars trading two years ago is producing a shortage of late-model used cars on the market today.

Sales of American vehicles plunged to 10.4 million as the recession hit its lowest extreme in year 2009, far below the 16 million-plus level in the years before the slump. They are now selling at an annualized rate of 13 million.

A program that held 2 years back called “cash for clunkers” sent 677,000 older vehicles to the junkyards as their possessors cashed in on a federal subsidy for purchasing more fuel-efficient cars. The reason behind it that most of the trade-ins were old. The program probably has only a slight effect on present market condition for late model used cars. The kind prized by both traders and buyers.

One more new factor has driven up used car prices. Smaller rent-a-car companies have joined the bidding at used car auctions in Japan. That is because automobile makers have cut back on their cheap fleet sales to these car renting companies, forcing the companies to bid newer versions of used cars.

This resulted with the tightest market for used cars in 20 years. According to the professionals in Banks, this situation will remain tight throughout the coming years. Prices for used cars usually rise slightly. The average price for a gallon of gas jumped 95 cents in the year 2010, according to AAA’s Fuel Gauge Report. That stems from increased demand in a recovering world economy, topped off by nervousness over Middle East Revolutions.

The rising prices of gas are sparking renewed demand for fuel-efficient and smaller cars. The Earthquake in Japan is adding to the nervousness. The thought among Japanese used cars exporters ( and traders goes just like this. Japanese cars manufactured are mostly fuel-efficient and if their production declines, more buyers will look towards Japanese used car exporters and traders.