The economy is changing, and more people are foregoing a brand new car for a like-new, cost-efficient used car. In 2011, almost 39 Million Used Cars were purchased, many quality models were from LCM Used Car Center in the Lancaster, PA area. 2012 is looking to be headed in a similar direction.
"We saw a lot of people whose existing cars were just tired so, after two years of pent-up demand, that finally led to a surge of used car sales last year, and especially in November and December," said CNW chief Art Spinella."1
Private party sales, also known as consumer-to-consumer, surged during the final months of 2011. With the number of free posting services to sell your used car online, it's no wonder that there was a spike in used car sales. December alone saw 73.1% of used cars listed online.
Spinella added that a "new phenomenon we've only noted since about 2008 (where) a lot of buyers who would normally choose a new car are going for what we call "transitional used cars" - vehicles they expect to keep until their personal finances improve."2
These shoppers may also opt for "nearly new" vehicles, those that just came off short-term, 1, 2 or 3 year leases, in near-new condition, often backed by warranties.
However, many lenders have been cutting down on leases, some no longer offer this option at all. This may be one of the many reasons people are turning towards used vehicles. It has even driven up prices on some used vehicles. One thing we are certain of, this trend will undoubtedly continue well into 2012.
Source: 1,2http://bottomline.msnbc.msn.com/_news/2012/01/04/9944839-a-big-year-for-used-cars-seen
