Price decrease for used vehicles could benefit automotive service centers
The North American Automobile Dealers Association has released projections indicating that the overall cost of previously driven cars and light trucks will go down in 2014 due to a variety of factors, which may be good news for service centers.
Owners of used cars are more likely to patronize independent auto repair and maintenance businesses as warrantees other incentives that drive dealership service expire, so the increased availability of used cars due to the lower cost may help increase volume. The NADA reported that some of the most significant price drops will be seen in later model year vehicles, because of variable production quantities put out by automobile manufacturers during the past decade.
Service centers may be seeing an influx of car types like luxury models, subcompact cars and small utility vehicles because these autos were popular production types. As such cars reach the end of their dealer warrantees, they're more likely to be brought to automotive service centers by their owners.
In general, economic indicators including unemployment and overall economic health in the country are indicating positively and credit availability is trending in a good direction. These factors will likely contribute to increased used car purchasing in 2014.
Service centers may also highlight other advantages - quick turnaround time, a broader parts sourcing network - to differentiate themselves and attract customers driving recently purchased used cars.