More Americans Buying Used Cars Vs. Brand New!

The recession must finally be over because Americans are buying used cars again at an ever-increasing pace.

Case in point would be the announcement by CNW Research that April's used-vehicle sales numbers were strong, up 4.35% vs. a year ago. The stronger number, though, is a 38.6% gain from March. 

Another interesting trend, which could really impact the price of used cars, is used passenger cars represent 45.8% of used-vehicle sales vs. 17.8% for SUVs. Last year at this time the numbers were 41% and slightly more than 20%.

This trend is interesting because used car supplies are largely driven by new car sales from three years ago or more. SUVs were a much more dominant force until three years ago when the last gas price spike somewhat began to influence buying habits.

You can't manufacture more used cars. The supply is going to be stronger for used SUVs, which means prices there will be lower. Used passenger cars are continue to have price pressure on them, especially because new car pricing is equal to or less than some used cars.


By: Mark Fisher