Used Cars Come In From The Cold
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Written by Steve R. Lowry
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Tuesday, 17 February 2009 |
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Used cars come in from the cold. With new-car prices spiraling and pushing consumers into buying more used cars, dealers are lavishing more attention on what was once the unfashionable side of their business, reports The Wall Street Journal. Dealers are responding to a five-year surge in demand for used cars, prompted by changing consumer priorities and the fact that the average retail price of a used car is around $11,000--nearly half the average new car price of $20,000. Another factor fueling the used car boom is the growing availability of fairly new, low-mileage cars coming off two- and three-year leases as a result of the current trend toward leasing. Some dealers are finding that, with a little extra marketing muscle behind their used car operations, sales of used cars have more than doubled in the last few years.
The news for consumers is mixed: While they have greater choice than ever in the burgeoning used car market, prices are going up as used car volume begins to overtake new car volume at many dealerships. But overall the trend is a positive one for consumers, and may force automakers to lower their new car prices to compete.
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Last Updated ( Tuesday, 17 February 2009 )
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