Has the car buyer shifted gears towards used car purchases vs new used cars?
In Q1 of 2016 major automakers in North America are reporting a nearly 8% increase in total of pre-owned vehicle sales when compared to the same period one year prior. In the large scheme of things this has placed used car sales on pace to being the best year for used vehicle purchases in North America in nearly one decade.
All of this comes on the heels of what was possibly the biggest bounce back year for the automotive industry in terms of new vehicle purchases and lease dealers in 2015. Last year nearly all automotive makers operating and selling in North America reported large % increase in sales, which have been climbing consistently over the past 8 plus years. Last year’s new vehicle units sold was the most since 2005, one decade later exactly.
So what does this mean for used car sales? Well it almost appears that the new car sales are switching places in popularity. Many car buyers are opting for used vehicles over new, and this also puts into account those who had leased a vehicle 2 or 3 years ago, and who are looking to purchase the vehicle used from the dealership once their lease has expired.
Might we have hit the highest point for new vehicle sales back in 2015, may we see things slow down a bit, but pick up on the other end with increased used car sales? One automotive dealership in Utah, Ken Garff Dodgehq.com claims that regardless of either belief, new or used is still proof that the automotive industry has bounced back in an incredible way.
Another thing to take note of is that major automakers like GM and FCA are reporting their Fleet vehicle lineups are reporting all-time highs in terms of sales. As more and more individuals are branching off to start their own local business such as; landscaping, roofing, etc., it is a great sign that the automaker is in tune with the consumer base and needs.