Posted April 23rd, 2009 by admin
It seems the used car market is not as bad as the new-car sales scenario. And ironically, any improvement in the used car market (or nearly new car market) leads to improvement a short time later in the new car market. Tampabay.com has posted an informative article on this used car phenomenon.
Economic uncertainty, tighter credit standards and stronger warranties on nearly new vehicles are luring price-conscious, credit-squeezed consumers away from new cars and trucks to used ones.
Last year, more than 13 percent of new car shoppers left dealerships with a certified used vehicle instead, up from 8.3 percent in 2003, according to CNW Marketing Research in Bandon, Ore.
While new car sales are expected to decline to as low as 10.1 million this year, from dismal sales of 13.2 million in 2008, CNW is forecasting used vehicle sales will grow through 2012. This year, the firm forecasts used car sales of 40 million, up 9.5 percent from 2008′s weak volume of 36.5 million.
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Strength in the used car market is a good sign for the battered new vehicle market, which has forced Detroit’s automakers to close plants, lay off workers and seek federal assistance.
Historically, strong used vehicle sales eventually translate into improved new car sales.
More about the Used Car Market
Posted April 21st, 2009 by admin
Like all prognostications, time will tell if this item about the future of the used car market will hold true. Perhaps by the time this situation comes about, we’ll finally have the flying cars we were promised back in the 1950′s.
ROCKVILLE, Md. – One Rockville company is looking to the past for the future of motoring — electric motoring, that is.
Genovation cars is serious about recycling, converting gas-powered 2001 Ford Focuses into electric cars. The gas tank has been replaced with rechargable batteries.
While launching a car company at a time of dismal vehicle sales may seem gutsy, Genovation President and CEO Andrew Saul is surprisingly calm.
“The main reason is to try to get electric cars on the road,” Saul said. “We feel there is a pent up demand from the public for cars that don’t pollute.”
Future of used cars
Posted April 3rd, 2009 by admin
Apparently CarMax is using some of it’s clout to sway lawmakers into including the overlooked used car market in the latest round of economic incentives. Hopefully the gov’t will see the used car market as the vital economic link to rescuing the troubled U.S. auto market- as used cars are often the gateway to new car sales down the line.
RICHMOND, Va. – Auto retailer CarMax Inc. on Wednesday urged Congress to include used-car buyers in its proposed “cash for clunkers” legislation aimed at jump-starting the auto industry.
Congress is developing legislation that would provide vouchers to consumers who trade in their gas guzzlers and buy more fuel-efficient vehicles. Modeled after successful programs in Europe, the bills before both chambers of Congress are designed to get more gas-sipping cars on the road and boost auto sales, which dropped more than 40 percent among the Big Three carmakers in March.
While used-car buyers are eligible for vouchers under some versions of the proposal, other versions exclude them.
“More people will be able to participate in the program, more jobs will be saved, and more fuel-efficient vehicles will end up on the road by including used vehicles,” Tom Folliard, the company’s chief executive, said in a news release.
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