In response to National Automobile Dealers Association’s chief economist Paul Taylor's comments, "Used Market Helping to Spur New-Car Growth" (Auto Remarketing Today, 12-3-10), I thought I would offer a bit of my own analysis. The increase in new vehicle sales is much easier to understand because the public buying decision has been so dumbed-down: $0 down $0 interest for as many months as you want! This alternative to fleet sales and endlessly evolving lease deals on the car makers part is very practical because "borrowing" sales now actually builds future availability of used product (Nissan Altima, Hyundai Sonata, and Honda Accord for example). And when these $179/mo models begin to come back to market, the very same marketers will already have in place a slightly different segment of new models at attractive discounted rates, there by repeating the cycle! Mr Taylor's analysis as a "shortage" in used vehicles should really have been branded as a shift in supply!
It's not the northeast weather that is keeping the wholesale market in check, it is the overall blanket of slow retail sales at both new and used car retailers! * Subaru product is the most in demand at auction now, Hyundai another sought after product line. * Toyota shows increased prices on non-recall units, but not as strong as you might assume... more trouble ahead for the giant retailer? * The availability (or pure #'s of units) crossing the block is down at auctions overall; and the old economics 101... supply v. demand... is not at work right now. * As stated last post, large trucks are softening, luxury SUV's firm. * Honda Civic strong, Buick (yes, Buick) in demand: 2004 LeSabre LIMITED with 44K sells at an astonishing $9900. Compare that to a 58K 2004 Toyota Camry selling at $8900! Go Buick, go. * It is the economy, stupid. When it is all said, people are not grabbing out for another or new car. We are in a replacement mode at auction- that's it. Chat soon
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