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Is the Bullish Car Market Screeching to a Halt?

Although most observers of the auto industry feel that at least as far as the auto industry goes, the nation has recovered from the recession. After all, 2012 was a stellar year for car sales in America and most project that this happy trend will continue in 2013. However, there are some very knowledgeable car folks who believe that the auto market is at Peak Car.

To be at Peak Car means that consumer demand for cars has maxed out in the largest car-consuming countries. Driving this concern is the fact that Americans do not need cars as much as they once did. Talking about this, Micheline Maynard, a couple years back in the New York Times, wrote, “For generations, American car buying has been guided by one grand philosophy: which one do I want? But now, another question has begun to percolate: do I need a car at all?”

Though this train of thought is a relatively new arrival to North America, it is one that is quite entrenched in Europe. Cities and other urban areas on both sides of the Pond dedicate resources to developing public transport infrastructure and green-friendly options such as bicycle lanes. Private folks chasing the buck are also selling alternatives to car ownership such as car and bicycle rental and borrowing businesses.

With all of this going on, it is no wonder that some are seeing that cars just are not as crucial to our daily lives as they once were.

About the Author

The author has many years of experience in automotive finance and insurance. However, each consumer's situation is unique. It is best to contact a finance specialist for further assistance.
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