How Will Australia’s Second Hand Car Market Benefit from Holden and Opel Pullout?

by Andre Smith in Reviews

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Citing poor sales, German car maker left its network of over 20 dealerships across Australia with only a year of operation since its inception to the Australian market in 2012. Aggravating further the decline in sales is the fact that the Australian car market is the fiercest and the most highly contested in the world, making it hard for a specific brand to gain significant holding over a longer period.

Even the iconic auto maker General Motors Holden was not spared from the highly competitive Aussie automobile market. Spanning decades of operation, Holden brand has become a national symbol of the country, hence, the recent announcement from General Motors top executives that the car giant will cut the plug of its manufacturing division in Australia has stunned the entire automobile industry.

Future of the Aussie automobile industry

With the eminent backlash experienced by the automobile industry, Australia appears to be losing ground in the manufacturing sector. Although manufacturing accounts to only 8 percent of Australia’s economy, billions of dollars in revenues will be lost from the automobile industry. There is a need for a significant reorganization of the system in the country’s auto market and effect significant restructuring to save the automobile industry dynamic and robust.

New approaches must be initiated and apparently, the second hand car market will reap the greatest benefits. While the shutting down of manufacturing operations reflect the storm of negative influences such as the high manufacturing cost, the second hand car dealers such as Carzoos will remain an integral component of the Australian economy.

The apparent demise of the car manufacturing sector of Australia has given rise to other alternative means, such as the second hand car dealers, as it is the most cost-effective way to secure quality car in the fragmented automobile industry of the country. Those desiring to own quality cars may rely on second hand car dealers.

Second hand cars as alternative for owners

The Australian car owners will greatly benefit from the pull-out of Opel and Holden in the automobile market because they can have an ample selection of reliable pre-owned cars for sale in Gold Coast at affordable rates. Primarily, price has been a major drawback for as it becomes more expensive buying new cars. Aside from the hefty down payments required, tipping further the balance in favor of second hand cars is the certification programs and highly depreciable new cars.

Opel exited the Australian auto market

Low mileage, latest car models may be acquired from second hand car dealers that have undergone rigid inspection and certification. Furthermore, new cars will have a significant drop in its value within just a short period because of depreciation. Normally, new cars can lose as much as 30 percent of its value within the first two years of ownership. You can find more info about Opel leaving Australia on Ground Report.

Presently, the Aussie car market is experiencing a tactical storm, driven by the current requirements in the marketplace. Nevertheless, continuing changes in the structure and price repositioning will further enhance the essence of the second hand car industry in Australia beyond 2016.

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