Used Car Sales Intensify As Economic Outlook Deteriorates

Friday March 6th, 2009 at 9:33 AM
Posted by: tonyb

empty used car lot

Well here’s one from “No kidding” file: As new car sales tank, used car sales are on the upswing. Even in January, when some automakers experience more than a 50 percent drop off in new car sales, used car sales were up a remarkable 10 percent. Naturally, the hop in used car sales is directly connected to the faltering economy. It makes sense, since used cars are usually thousands of dollars cheaper than their newer counterparts. And that leads many buyers to skip the new car showroom in favor of used car lots.

One of the downsides though, is that as more people frequent used cars dealerships, prices increase, in spite of the down economy. Steve Jardine, a dealership owner in New York, remarked to Newsweek that a 2006 Toyota 4Runner was selling for about $14K in November, can now easily fetch $19K. And since there are fewer new cars being sold, that means fewer used cars on the market, which caused Jardine to predict that used car prices “will go even higher”.

Naturally, if you happen to own a late-model, low-mileage car, you could profit from this recent market shift, since dealers are doing everything they can to secure quality used cars. Some dealers are even going as far as offering owners a new car without increasing payments.

Source: LeftLaneNews

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