NADA released the December 2011 edition of their Used Car Industry Update last week, and there are several bits that I like to see:
“Looking ahead, we’re anticipating that used car and truck prices will remain relatively flat through the remainder of the month and into January before moving upward again per the seasonal norm as we head deeper into the first quarter.” (p.5)
This is a change from the usual pattern, where used car prices slump significantly in Q4 in response to slackening demand due to the holiday season.
However, this year, strong demand from people who are finally giving up their old cars, coupled with tight inventory levels, has been keeping the prices relatively stable:
“In addition, used vehicle demand indicators remain strong, which when viewed alongside an anticipated ~8% reduction in year-over-year used supply supports the view that used prices will remain firm through the end of the quarter.” (p.5)
Why do I like to see that?
It means that members of the Carloan.com Dealer Network are going to continue to be successful with the finance leads we send them. They’re going to continue to be able to get a higher price for their used inventory and not have to wait till January to keep cars moving off their lots.
We’re still seeing demand from consumers in our network too — which is even better news for our Carloan.com dealers. And there’s only going to be more as we head into tax season.
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