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What’s Keeping Used Vehicle Sales so High?

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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.

Image courtesy of nongpimmy / FreeDigitalPhotos.net

Know Your Credit Score: First Rule of Auto Purchasing

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What’s the first thing you do before you head into the dealership to purchase a vehicle?

That’s the question that Gerri Detweiler wrote on a post for Credit.com.  She found herself in a position many car buyers have been in of late.  Due to the recession, car owners are holding onto their used vehicles for longer thus driving up the price of pre-owned due to scarcity.  She was forced to look into the new market and wasn’t entirely certain how to start.  Thankfully, her husband had the experience and guided her into the process.

She has provided some solid advice on what to do when new to the market and the questions you should ask yourself before even setting foot in the dealership.  The very first one you should ask is the one that’s not the most obvious.  While certainly things you should know, such as knowing what you can afford, checking with Kelley Blue Book to estimate your trade-in value, or going through Edmunds and other report sites to see the best car for you, the one that you should know first is your credit score.

For whatever reason, this one gets lost in the mix.  Not knowing your credit score is the first step to disaster when shopping for a new vehicle.  Gerri Detweiler found a great quote from Phil Reed who used to work for Edmunds in which he said, “So what happens is they go directly to the dealership without checking their credit scores – which is not a good thing to do – and their attitude is “get me done.”

Knowledge is always power when it comes to negotiating with interest rates.  By knowing your credit score, you’re already one step ahead of the bunch.

Looking for an auto loan?  Check out Bayside Chrysler Jeep Dodge in the Queens New York area.  We offer quality customer service to all who come through the door.  Works with us and you’ll see why our slogan is “We love to say yes!”  Follow us on Facebook and on Twitter for more tips and advice and our monthly specials!

Interest Rates Remain Low as Auto Sales Increase

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Comerica Bank releases a report every three months known as the “Auto Affordability Index.”  What the report does is take the median income for a family in the US and the average price of a new car and compares them to see how many weeks it would take to finance the purchase.  The most recent one brings good news to people who are having a difficult time due to having bad credit.

Auto Credit Express breaks down the report in their latest blog.  An averaged-priced new vehicle took 23.6 weeks of income to buy.  Buyer spent $900 more on new vehicles in the fourth quarter of 2012 than in the third of the same year.

Even though there was a rise of late in prices, sales continue to be very good.  Some of that is due to an up-tick because of Hurricane Sandy forcing many drivers back into dealership to replace destroyed cars.

What that means is that demand is rising and so will be interest rates.  As of right now, you can still get yourself a great deal.  If you’ve needed to purchase a vehicle but have been holding off, now is the time to take advantage of the affordability before it goes up.

Contact us at Bayside Chrysler Jeep Dodge and see why we love to say yes.  We’ll help you find the new or pre-owned vehicle that suits your life-style.  Follow us on Facebook and Twitter for all our monthly vehicle incentives.