By: Gov Auctions | 23 December 2013
More New Car Sales, Lower Used Car Prices
The used car market has continued to see prices fall, as new car prices drop. More consumers are choosing to purchase new cars, and the effect is being keenly felt by used car dealers.
The Great Recession has led to, among other things, more personal and economic concern for American consumers than has been seen since the mid-1970s. This, in turn, had created the perfect climate for used car lots to profit.
For a time, used car prices were on the rise. However, in foreign markets such as Thailand, new car companies have made their products more affordable, leading to dwindling business for used car dealerships. That pattern is now repeating itself here, as well.
In New Jersey alone, reported used car sales dipped by as much as 150,000 in 2010, and this trend seems likely to continue as used car dealerships become more and more competitive with one another in an increasingly difficult market.
The National Automotive Dealers association reported an overall drop in prices for used cars sold wholesale by 3% nationwide.