Why Gas Prices and Used-Car Sales Will Keep Rising

Economics for dummies: a monopoly is a firm that has no competitors in its industry. It reduces output to drive up prices and increase profits. Currently, OPEC is composed of several developing nations that include Africa, the Middle East, and South America. The largest free markets in the world, the United States and the European Union accounted for nearly 3/5s of the global domestic trade with a whopping $42 trillion combined. China, a developing nation who exported nearly $15 trillion last year during the Covid-19 pandemic, also wants a piece of the black gold. These trillions being made rely on oil to lubricate their profit generating machines.

The demand for used-vehicles correlates and is lagging petroleum. As legislation to decrease global emissions continue, the supply of oil will be decreased. Decreasing supply in a situation where the demand is booming is beneficial for electric vehicles as the only way to make it appealing for people to buy them is through making oil less desirable and expensive. Switching to gas saving vehicles could be beneficial to you.

The demand for oil is going through the roof. Despite of the crippled global economy, the price is currently around $86 per barrel of oil; after having a melt-down in price, which meant oil went negative. Oil is roaring back, and nothing will stop it. OPEC controls much of the supply for oil since their nations control most of the discovered oil reserves and usually exceed their agreed upon quotas. The United States utilizes West Texas Intermediate to determine their supply and demand, while the European Union relies on Brent Crude Oil prices to gauge prices.

Why do oil prices matter? Oil prices are a vital sign in forecasting economic health since its one of the driving forces that help propel the global economy. Oil’s sensitive and fluctuating prices can only mean one thing: extreme high demand. In April 2020, the unemployment rate in America reached 14.8%, today, its hanging around 4.8%. Despite the American economy still trying to breach the effects and influences of the global pandemic, can you imagine what will happen when the economy is back and roaring? One last thing, winter is coming.

Next thing to analyze is the sudden increase in new and used car prices. New car prices rallied 37% YoY last month in September, all whilst used car prices soared passed 40% due to a shortage of new cars. Unlike oil, whose supply is controlled by monopolies, car inventories are running low while the volume of demand is rising. Car prices are seasonal. The summer time usually sees the peak of it sales, while the winter time usually brings about receeding prices. Unfortunately, a new phenomenon which has affected other industries, has struck prices for suppliers and customers: supply shortages. This winter will be harsh, people looking to buy new cars will have to pay the premiums. By this upcoming spring, things could get worse. CarVanna, is an indicator of how car sales are off the charts.

The prices of oil correlates with new and used-car prices. If you know you will need a car or would like to upgrade your current one or even switch to a gas efficient one, the time was yesterday. Get in contact with us to not only save 30-40%, but gain the ability to own an appreciating asset instead of a depreciating one. Inventories will decrease and prices will keep rising, take the risk.

Oil stocks are testing resistance levels and holding support, this only means prices for oil will keep rising and car prices will follow suit. There is one caveat, car inventories are being strained, so if demand keeps rising, we are in for a treat. Contact us to learn how to capitalize in the solution to strained car inventories . The economy is roaring!

How To Get A Car For Free

Our competitors will hate us even more for this one, but our goal remains intact: to commoditize cars. What do we really mean by commoditization of cars?

Globalization has paved the way for many expensive items such as plasma T.Vs, laptops, and even phones to reach the palms of peoples hands who might have not have had the resources or opportunity to purchase them, might it not been for global efficiencies. Globalization’s aim is to ease commoditization. Usually, how commoditization occurs is either through scaling the technology needed to produce a product or by a significant reduction in the price of raw materials which allow the producers to save money, and thus, allowing those savings to be passed on to their customers.

The problem with the commoditization of products, is that when a certain technology or product becomes so price-efficient, the producer has the ability to either keep prices where they are or lower their prices in fear of looming competition. For example, take the price of insulin during recent years. Twenty-three million people in America suffer from diabetes. Five percent of the people who have diabetes have Type-1 diabetes; people who suffer from this illness suffer from hormonal problems which affects their immune system and its ability to fight diseases. Technology to create the product became so efficient that the producers colluded to raise prices despite the cost to make it having decreased drastically.

Another prime example of commoditization are computers. From 1999 to 2003, the price index for computers decreased 20% per year and has slowed down to about 11% per year. This industry is interesting because they sell unique and vital products that everyone needs; almost everything utilizes or needs CPU components. Unlike the pharmaceutical sector, that tends to price gauge products, computer manufacturers have allowed prices to remain low to allow anyone to obtain their revolutionary products.

We are not in the business of unfairly raising prices but in the business of helping others achieve their goals. Often times, cars are the first means of executing one’s personal goals like getting a job, an apartment, or to beginning a savings account. More times than not, people are unfairly ushered onto unfair deals due to their necessity. Many new or used car dealers prefer to get customers into unfair contracts that bring about high interest rates that put customers in a position where they spend more than they make, establishing a broken cycle.

I’m sorry for my rhetorical questions but I mean well. The title of this blog is How To Get a Free Car but all I have done is talk about insulin and computer prices. So, how can you get a free car? Like always, I have thought this out and I wish to provide you with a solution. How we get free cars is through our supply chain. We purchase cars through an online auction at 40-50% discounts, we ship the car to our mechanic, then to our body shop, and finally to our dealership. When its time to sell a car, not only did we save around 40-50% per car, but we also profit a hefty 20-30% per car. Now, you could say, if it was that easy, then why don’t others do it?

We’re currently in the process of automating our supply chain. Our goal is to spread awareness in this market and to connect the general public with our online auction distributors, connect local shops with the vehicle purchaser, and to facilitate the sale of the car. Technically, any car purchased through our supplier, after being repaired, allows the driver to actually appreciate the vehicle in value after repairs since it was depreciated 75% after being “salvaged”. If the buyer or investor wishes to keep the car for a month or two, after finally deciding to sell the car, they can cash in on profits instead of being locked into unfair deals.

Typically, new cars depreciate 20-30% as soon as they are driven off the lot and 15-18% every year after the second year of purchase. It is not wise to buy a new car. As gas combustion engines are reaching the end of their useful life, states like California are vowing to discontinue their number one source of pollution and energy consumption after 2030, it is a good idea to start looking into the used car market to find savings, especially in the salvage/rebuilt title market.

Now, here’s a controversial statement: the difference between a poor person and a rich person is not the size of their bank accounts but their tolerance for risk. Due to our experience and proprietary system, we have designed a strategy to buy salvage cars that converts them into appreciating assets, rather than depreciating assets. According to Manheim and their Mannheim Used Vehicle Index, used vehicles have appreciated in value, nearly 37%.Taking the risk to repair a salvage title makes sense in these current times in the car market where car dealers are paying 5% more in whole prices and nearly 30% more since last year!

We seriously recommend for people who are thinking of buying a new or used car to consider buying a salvage or rebuilt tile, or else, contact us to minimize risk by putting in a special order. We typically save customers 20-30% and offer them vehicles that will last them for months to come. Our mission is to commoditize cars. As time passes and this idea gains ground, we hope to be a marketplace connecting aware buyers with willing suppliers who want to help people get comfortable prices in such dire products like transportation. We could raise prices like the pharmaceutical industry but were in the business of saving customers time and money. Tap our link below to buy rebuilt titles, which are 40% under market value and 100% reliable.

Again, the cars are free. After having used your resources or capital to purchase a car as an investment, your investment has the potential to appreciate as an asset instead of a depreciating asset with high interest. You can typically save 40% after purchase and repair. You can even drive the car for up to a year, and you usually recover your investment and some decent gains.

Lastly, contact USAA to obtain Rebuilt Title loans at fair interest rates!

Myths and Facts Regarding Salvage and Rebuilt Titles

As supply shortages continue to affect supply chains, car prices have sky rocketed nearly 40%. If you’re a risk taker and like savings, then salvage or rebuilt titles not only save you money, but they also appreciate in value! So, how does this work?

Used Car Auction
Used Car Auction

Have you ever wondered why insurance costs are so high and why everyone has to have it? Well, the answer is simple and short: 287 million drivers in the U.S suck at driving. Another question is, what happens after an accident? Well, the answer is also simple: your insurance provider either pays for your liability or the value of your car is paid back in full after an insurance claim is filed, depending on one’s insurance coverage.

As you can probably tell, accidents happen all the time. Out of the tens of millions registered vehicles in the U.S, many of them end up in online auctions belonging to the 2 major online-auction sites: Copart or IAA auctions. After having been involved in an accident, many cars are considered salvage, but in reality, much of the value and useful life of the car is still there. Here is where things get interesting.

The rhetorical questions are getting old, but I need you to see my vision: so how is the most popular car in America being sold for nearly a 50% discount? Keep reading to find out.

Something is fishy. Why are cars so expensive at car dealerships but so cheap at car auctions? Typically, car dealers prefer selling clean title cars because for one, they have few to no headaches and two, banks are very lenient with car loans, which allows car dealers to avoid in-house-financing and get their money at once. Still, the question remains, how are $30,000 cars being sold for less than $10,000?

So, where do salvage titles come from? At last, like my favorite philosopher Socrates said, “by asking questions you arrive at the truth.” By law, anyone who owns a car and would like to legally drive a vehicle in the U.S must have at least liability or full coverage insurance in order to register with the Department of Motor Vehicles. On average, out of the 287 million registered drivers, about 6.75 million people get into accidents per year. Besides the cost of auto insurance, which varies upon your demographic, insurance companies generate revenue through premiums and by selling the insurance policy owner’s vehicle after the car is deemed to have at least 75% damage. Many vehicles that are deemed “salvage” are in reality minor damages that could be fixed by taking it to your local mechanic or body shop. This is where we obtain our arbitrage.

At NOVA Auto Sales, we are in the business of commoditizing cars to allow everyone to have the basic need of transportation. If items like food, shelter, clothing, and water are considered basic needs, then why not transportation when everyone relies on it for various reasons.

Our values are centered around being fair, honest, and transparent. Our mission is to help people in need of basic transportation by offering competitive prices. In addition, our vision is to make cars so cost-efficient that other dealers will be forced to do the same.

Lastly, it is important to note that major institutions like insurance companies are beginning to offer full-coverage on salvage or rebuilt titles. To add on, what is even more surprising is that banking institutions are also beginning to give out car loans for salvage or rebuilt titles. As this industry grows due to supply shortages, we will continue to offer fair prices to our community. We are the CarVanna killer. Contact us to invest in the next big investment opportunity.

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