Things Continue Looking Up for Used Car Sales
Used car sales have been booming amidst Covid-19 and there is more to go around in the coming months. The demand for purchasing a vehicle hasn’t completely disappeared despite the economic downturn. If anything, people who used to rely on public transportation and ride sharing services are now faced with the need for their own vehicle. With many buckling down their budgets and personal finances, used versus new is a no brainer.
The improvement of the data we have received from dealer sales is quite optimistic. Used car sales have risen significantly more in the last few months than new car sales, and have even surpassed numbers from last year when the economy was not in turmoil. Predictions that were made for dealership sales earlier this year might have seemed accurate for the circumstances, but used inventory has become the hot commodity that knows no limits. In fact, May used vehicle sales were only 5 percent below pre-virus forecast, according to JD Power, which is barely noticeable to most dealers.
We have to remember who is driving up our demand for vehicles and how prevalent debt is now in comparison to years ago. Someone with a budget or even a smart spender will opt for a used vehicle versus something brand new without a thought. Vehicle pricing and so-so incentives don’t exactly make new vehicles the “must-have” for many consumers, especially when you can get something that is practically new for a lot less.
Rental companies who have suffered through this crisis along with the rest of the world are now beginning to increase disposal of their older vehicles. In order to stay in business, they are tracking the demand closely, off-fleeting at the perfect time when demand is at its highest. It is obvious the demand for rentals is not what it used to be, but by relieving their massive inventories and adjusting how they run their business, most are staying afloat.
Consumers have a lot to gain from the used vehicle market right now, and with the world semi-opened up, dealerships can look forward to a busy rest of the year. With the rush of off-rental and off-lease vehicles headed our way, consumers will have lots of options and will likely choose to pay less for something lightly used and well-maintained. Things have come a long way in just a few short months following the shut downs and as far as used car sales go, we can only go up from here.
