Automotive Industry Analysis Since the inception of the automobile there has been a history of used car sales and since the car sales boom of World War II there has been an ever greater number of used cars sold. In the immediate post-war period there were around nine buyers for every new car produced. The sales staff simply had to find out who could afford a new car. “Afford” was defined as paying in cash. This condition existed until the early 1950s, when supply began to find that some new terms were creeping into the retailer's vocabulary. such as “overage,” “discount,” “deal,” and “terms.” The emphasis, however, was still not on the product but on the price. Furthermore, the asking price was no longer final. There was also, if you could haggle a bit, a taking price. For the first time it was possible to bargain with the merchant. During the 1960s, other new merchandising techniques were introduced. “Sticker pricing,” “fleet pricing,” “forced selling,” “50 more on your invoice,” “high-impact advertising,” and “free” accessories were just some of the new innovations. The buyer was becoming more educated, more capable of purchasing – thanks to 24 and 36 month payments – but was still confused and fearful about price. “Good deals” became “bad deals” after talking to friends and neighbors. Caution became the watchword when buying a car. The advent of the 1970s brought more confusion to buyers with new processes such as leasing, 48 month payments, credit unions, rebates and consumer advocates. However, in defense of the consumer, books on "How to Buy a Car," "Invoice Prices for American Cars," and "Used Car Buying Guide" were published and sold by the millions. the idea that customers were only interested in one thing: the lowest price. The atmosphere of car showrooms didn't change much from the 1970s to the 1980s. Most retailers viewed the car sales business as an "us versus them" hard selling game. Those selling popular Japanese products became arrogant and insensitive to their customers, and those of us selling American vehicles continued with the approach that price, and price alone, sells vehicles. In the late 1980s, however, the winds of change began. impact the retail automotive market. Today, in 2008, the automotive retail business is much different than it used to be. In today's market, 5 out of 6 cars sold in the United States are used.