Used-Car Sales, Usually Higher When New-Car Sales Slump, Share the Woe
Edmunds AutoObserver blog, which provides news and commentary about the automotive industry, has an excellent article today on the struggles of the used car market
. Even though used-car sales usually climb when new-car sales drop, this year may be the worst for used-car sales in two decades. The reasons? The credit crunch is affecting used-car buyers even more than new car buyers, because there used car shoppers are generally higher credit risks. Fewer people are trading in their used cars as well, making it hard for dealers to keep desirable used cars in stock (though they've still got their share of low-mpg vehicles that were traded in during the summer). And of course, the overall economy affects all of these factors.
The article posits that, in order to survive, used-car dealers have to start pricing their cars more realistically. "The majority of the used-car business is still operating without realizing that customers now go to the internet and know what the market value is on a used vehicle," said the director of industry relations for Atlanta-based AutoTrader.com. Score one for sites like Edmunds.
So if you're considering trading or selling your used car, or shopping for one, read the article and remember to appraise or price out that used vehicle before you hit the dealer lot. You'll be glad you did.
- Posted by
- Joanne Helperin February 2, 2009, 3:00 PM
- Permalink
- Categories:
- Used Cars
- Technorati Tags:
- Credit Crunch, Used Cars
Wow, I never expected used car sales to suffer this much! But then again, with the prices of some used cars (1 or 2 year old Civic, for example), one might as well get the new one!
Joanne, nice to read from you again! How've you been?