We’ve written about in the past about how the used market has seen a major uptick in late of sales. A major factor for the New York area is because of the impact of Superstorm Sandy. When the hurricane came through and wrecked havoc on the city, it hurt many car owners who found themselves the morning after without their vehicle and were forced back into the market. Nationally, there are even more factors at play. For example, one is that people have reached the end of their vehicles life and no amount of repair and wishing is going to keep it on the road. It’s time for most drivers to get into the dealerships.
Tom Webb is an economist at Manheim and he took at look at used retail sales. He found that in the first quarter of 2013, used-vehicle sales were 12 percent higher year-over-year while most other industries are slowing down. He believes that a big reason is because how available financing has been for vehicles.
“On any given day,” Webb says, “there are literally hundreds of thousands of vehicles with owners who would like to trade up to get something a little bit better if they could do so with an affordable monthly payment. Given the availability of retail financing, a natural changeover of those vehicles over time will occur.”
What I find interesting is that numerous blogs and other speakers have, at lengths, informed me that the recent surge of the market has been due to the age of the vehicle, as I mentioned earlier. While certainly a part of it, Webb sees things differently. He believes that people coming in wanting to trade-up being the biggest reason why the used-vehicle sales are staying as high as they are.
Other markets are in flux at the moment because of the recent rise in payroll taxes and fluctuations in gas prices. Yet while these spending segments dip and slump, used-vehicles are seemingly impervious. Webb even says so himself, “To a certain extent, the used-vehicle market has been impervious to these factors in terms of retail sales activity.
The point of Webb’s study was to show that used-vehicle sales will hit an all-time high before 2015. What I took away was that he identified some great reasons why vehicle sales have maintained a positive upswing in the face of major economic issues impacting consumers. Financing has been made much easier to obtain and it definitely looks to be helping.
If you’re in the market for a used or new vehicle and need to look into financing, that’s where Bayside Chrysler Jeep Dodge comes in. We offer the best customer service to work with you to help you get into the car you need. We love to say yes, so contact us today and let’s get started in making sure you drive away satisfied with your purchase. Make sure you like us on Facebook and follow us on Twitter for more financial tips and monthly service offers.
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