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Posts Tagged ‘new vehicle sales down’

Used Car Sales to Keep Dealers Afloat During New Vehicle Sales Slide

Off-lease vehicles becoming affordable alternative to new.

by on Jun.29, 2017

New data shows that U.S. auto dealers are expected to handle the downturn in new car sales just fine by selling more used cars.

Despite a drop in the sales of new vehicles during the first half of 2017, American car dealerships are still expected to sell more cars and trucks this year thanks to robust demand for used vehicles, which indicates the auto industry is nowhere near slipping into a recession.

Jonathan Smoke, chief economist for Cox Automotive, which manages online publications such as Kelley Blue Book and Auto Trader as well as used-auction centers, said data already indicates that the shift is well underway. “Dealers are selling more vehicles, but the mix is changing and shifting from new to used.”

Business News!

Thanks to strong sales since the recession, the supply of appealing used vehicles has increased substantially helping dealers build their inventories of used vehicles, said Smoke, who added dealers are also willing to pay more for used vehicles to insure they have an adequate supply of used vehicles. (more…)

Despite Falling Sales, New Vehicle Prices on Upswing

Rising incentive levels not undoing rise in transaction prices.

by on Jun.27, 2017

Despite a soft market and plenty of incentive, people are paying more for new cars than ever.

New vehicle sales in the U.S. have softened this year forcing automaker and analyst alike to reconfigure their once-lofty sales expectations for 2017.

Most expected this year to approach last year’s record of 17.55 million units, but after a fourth straight month of down or flat sales — June sales are expected to slide 4% — most are forecasting sales to come in closer to 17 million units.

Financial News!

General Motors revised its forecasts earlier today down to the “low 17-million” unit range while the analysts at LMC Automotive rounded down 100,000 units to 17.1 million. (more…)