The economic crisis has struck new and used dealerships alike. According to the National Automobile Dealers Association, over the past year nearly 1,000 dealerships have closed forcing more than 50,000 Americans out of work. This doesn't include the thousands of employee layoffs that have occurred at the dealerships still operating.
The good news is that a bleep of sales life is picking up speed in used car market. Sales of certified pre-owned cars in January 2009 were up 10 percent from the same time last year. In response, dealers are now turning their focus on used vehicle operations.
To make matters – or deals – more interesting, drivers are hanging onto current cars longer. So if you're looking to jump into the game of used cars, whether you’re considering a trade-in, buying used or both, here are a pointers to keep in mind about the new face of the used car business.
A trade-in vehicle must mesh well with the market
The National Independent Automobile Dealers Association (NIADA), an organization specializing in supporting used car dealerships, the top-selling used vehicles are (and in appropriate order):
- Ford F-Series
- Chevy Silverado
- Toyota Camry
- Honda Accord
- Toyota Corolla
- Honda Civic
- Ram 1500
- Chevy Impala
- Toyota Tundra
- Dodge Grand Caravan
If you have a Top 10 used vehicle, it must be in keen condition. If a dealer cannot warranty a vehicle, they cannot sell it.
Used car dealerships weathering the economic storm likely have the strongest word-of-mouth
Dealerships that can fall back on 50 percent of their business coming from referrals or repeat customers structure their investments well. Franchise or independent used car sellers not out to make a quick sale – or as dealership owner Bob Iverson of Sonoma Family Motors puts it "aren't nearly as interested in cars as in people" – are showing better staying power.