Lesotho is a landlocked country that is surrounded by South Africa. It has over two million residents with more than quarter of them living below poverty line. Although the economy is still in struggling phase, as being part of British Commonwealth it has a number of debts to pay off.
Over the years, we see an in-equal distribution of income, where the rich is becoming richer and the poor is getting poorer. Like many other fronts the car industry was flourishing in rich class, where even the middle class had transportation issue.
The Inception of Used Cars
The introduction of used car, was a fresh air; bringing in relief on many fronts. Aside from Japan there are a number of countries that export used cars. Although Japan rules the market because of implementation of export aided policies. It is because the average Japanese seller is able to get new car at very cheap price, when compared with the maintenance cost incurred to keep the old one.
There are a number of cars available in the market that has best facilitated the transportation need. The advantages it brought in includes:
Because of having a number of auction houses leading to cut-throat competition, the profit margin has been reduced on the end of seller. This had lead to low bid getting success, making the overall market price of unit reduced to half and in some cases even less. One is able to get low price option without much hassle.
The quality is at the best, because in most of the cases the cars have not been used for long. Even as a Japanese car, the exposure to rough road is low because of the efficient system of public transport. So after 2 years, even the less than 50,000 mileage vehicles are sold at half the initial retail price.
Hence the used car has indirectly supported the economy of Lesotho.