Dealers Stock Up as Used Car Sales Rise
Used car dealers around the country reported an increase in sales for the quarter and the year, and dealers are stocking up on inventory to prepare for what they expect to be another busy quarter thanks to coming tax returns.
McCluskey Automotive, which sells some of the best used cars Cincinnati has to offer, has had a busy quarter, as well, but sales figures were not reported.
Across the country, large chain dealerships reported their sales to trade publications. For example, CarMax reported a 16 percent increase in sales for the third quarter, which was its highest growth for the year. Specifically, sales of used cars were up 16.6 percent for the year, and the dealership said that it sold 14 percent more units overall for the year.
Lithia Motors said that its sales of used vehicles were up 13 percent in the third quarter over a year earlier, and it expected sales of used vehicles to rise 31.5 percent for the year and 38 percent in 2015.
Penske Automotive Group said that its sales of used vehicles were up 11.6 percent in the third quarter. Group 1 Automotive reported an overall increase in third-quarter profits of 31 percent, which it attributed primarily to used car sales. Group 1 Automotive saw a 16.2 percent increase in used car sales in the third quarter.
All these dealers reported higher gains in used car sales than in new car sales.
To prepare for the rising demand for used cars, Cincinnati dealers and others around the country are stocking up on inventory. Dealers also expect a spike in demand when people start getting tax refund checks.
You can take advantage of this demand by selling your used vehicle to get the cash you need. If you are in the market for a new car, you can feel more confident that you’ll find a larger selection from which to choose.
Kelly Blue Book has reported that sales of used cars at auction have declined slightly (about 1 percent), so buyers may also be able to take advantage of lower prices when they shop used cars this quarter. Overall, TrueCar says that the average cost for a used car is $16,335, which is almost half that of a new car. The average cost of a new car for the year was $31,831.
Add to the low prices that financing has gotten more competitive, and you have plenty of reasons to shop for a used car this year. Stop by McCluskey Automotive to shop the best used cars Cincinnati has to offer.