Ample supply of used cars may mean more incentives on new
With a generous supply of used cars on the market, retail prices are softening, and manufacturers could decide to ramp up incentives on new cars, ALG president Larry Dominique told WardsAuto. Then buyers who are undecided whether to buy used or new would be persuaded to buy new.
Figures in the Detroit News tell the used side:
« The average used car sold at franchised dealerships for $10,963 in September (CNW Marketing).
« Used-car inventory rose 1.5 percent in September (TrueCar).
« Certified pre-owned supply is up 6 percent in the past six months (AutoTrader).
Used-car prices dropped in the third quarter, bring mixed news for dealers. Lower prices made it easier for them to sell customer trade-ins and off-lease vehicles, Manheim chief economist Tom Webb told WardsAuto, even though their profit was less. The lower prices were also good news for dealers buying at auction.Download Bulletin PDF