Review of used auto sales::Repossessed Cars for Sale?
Review of used auto sales::Repossessed Cars for Sale?
Rising consumer confidence, an aging fleet and greater access to credit are key factors that will increase consumer demand for used cars and trucks in 2011. Here are five factors that will boost used-vehicle sales this year: Short Supply Leads to Higher Prices- Expect to see a reduction in the overall supply of used vehicles in 2011. Used-vehicle auction prices should increase 5 to 10 percent in 2011. Fewer new vehicles sold in 2008 and 2009 resulted in fewer trade-ins. That means a lower supply of used vehicles which supports higher prices. AuctionNet, an auction transaction database that represents about 80 percent of the wholesale market, reported year-over-year increases of about 10 percent on used-vehicle prices for two- to five-year-old trucks and sport utility vehicles and an 8 percent increase for cars. From a brand perspective in 2010, Ford, Chrysler and General Motors all showed positive growth in used-car prices with gains averaging between 15 to 20 percent for two- to five-year-old models, while import brands improved on average by about 10 percent. Along with the mainstream brands, luxury brands showed improvement in 2010 year-over-year with high volume manufacturers like Audi, BMW, Cadillac, Lexus and Mercedes-Benz posting wholesale price increases at or above 10 percent. The increase in wholesale prices in 2010 were on top of dramatic wholesale vehicle price increases of 30 to 38 percent for trucks and 19 percent for cars from 2008 to 2009. Rising Trade-In Equity - Consumers will benefit from high trade-in values in 2011, which will help facilitate a new-vehicle purchase. This should have a positive impact on consumers with trade-ins of all ages, conditions and types and aligns well with pent-up demand to replace vehicles. Aging Fleet Needs to be Replaced- Data on vehicle demand, U.S. scrappage rates and the median age of cars and trucks on the road are pointing to consumers wanting and needing to replace their older vehicles, which data shows now averages more than 10 years old. Steady Flow of Credit - According to a Federal Reserve Board survey in the fourth quarter of 2010, about 20 percent of participating lenders reported an increased willingness to lend while none reported a decreased willingness to make auto and other consumer loans. Better rates, higher loan-to-value ratios and higher approval rates for most credit classes will help facilitate an increase in lending. Lenders will offer car shoppers attractive financing rates as they scramble to increase their market share. Industry Managing Inventory More Effectively- Dealer investments in staffing, technology and improved inventory management on the used-vehicle side of operations resulted in an 11 percent sales increase in 2010. The restructuring of the auto industry over the past three years has created many positive effects on how consumers, dealers and automakers view the used-vehicle market. We are now in an age of a more efficient, more intelligent and a more sustainable business model for the used-vehicle market.The good news about better trade values is the car shopper will get a better deal on the car or truck they are purchasing. Make sure you look online for your best car loan financing as well. OpenRoad Lending is one site that offers great rates on auto loans and car refinance loans as well. The process is simple and you can have your financing wrapped up in a few minutes. |
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Labels: Auto Blue Book Car Values, CarMax, eBay Auto Sales Used, Hertz Used Auto Sales, Local Used Auto Sales, Used Auto Sales By Owner, Used Auto Sales Chicago, Used Auto Sales Tampa






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