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Auto sales expected to boost with the help of lower gas price, aging vehicles and increased inventory

There are still gloomy outsights towards current lagging economy situation, especially in the field of automobile sale. However the chief economist of NADA said that the sale trend will boost for the next few months, even with the mixed results from major U.S automakers in April 2012.

He quoted as saying “Modest economic growth, declining gas prices, low interest rates and affordable leasing options to choose from, also aging cars needing to be replaced will be strong indicators that the future auto sales will be growing.” If the gas price keeps going down, then the consumers will feel comfortable with buying a new or used car in the near future. He predicts that new and used sport-utility vehicles, crossover-utility vehicles, minivans and pickup trucks sales will increase by more than 10 percent in 2012, as more demand will come in.

Another factor for car sale boost is the already higher value of used car trade-ins. According to NADA guide, used car prices have been continuously rising in recent months which in turn resulted in the rise of trade-in values for used cars owners who are looking for another vehicle to replace.

Lots of used car buyers can be hurt by mileage rip-off

If you are buying a used car and found that odometer was illegally changed, then it will cause a big issue, either mechanically or ethically. It is literally the “illegal practice” that should not be allowed in the auto market. In South Australia, this illegal practice seems to be commonly performed, according to this news. The report revealed that one in 100 used vehicles has been tampered with, meaning that the car was sold under false pretences and breaking the contract.

The problem comes from the shady sellers who had avoided detection and purposely got away with the prosecution when they represented the odometer readings.  If such activity was found of guilty, one can get up to two years of jail time and fines of $40,000 to $60,000 depending on the state.

By this malpractice, the new used car owners will be ripped off, by paying too much money for their purchased car, and furthermore there will be more common breakdowns and issues because of the conditions of the vehicles, which is not really as in good condition as it was claimed.

The best way would be to hire independent auto mechanic and have them check thoroughly, and check the car history report, finance check and damage report which will reveal the real odometer readings. This is important because then they want to sell the vehicle later, they can become accused of being a clocker for odometer even if they didn’t know at first place. So buyer should be aware.