A recent Wachovia Bank survey of 40 large automotive retailers shows an increase in used car sales, with 28 percent of dealerships indicating that their used car sales were above expectations, reports the Associated Press.
The results represented a steep increase from 6 percent in the bank's January survey and flat results compared with year-ago levels.
"Although there was some seasonality, we believe many dealers have lowered their expectations and new car intenders may be switching to used cars," Wachovia's Richard M. Kwas wrote in a note to investors. "In general, dealers conveyed that prospects are more interested in used vehicles over new."
In addition, 82 percent of dealers said that they have "just enough" used vehicle inventory for their needs, up from 64 percent at the same time last year.
At the same time, 15 percent of dealers said they had "too little" inventory, up from 6 percent in the last survey, but down from 31 percent last year, indicating optimism among some dealers about the spring selling season.
Officials for MyRide.com, said they've seen a steep increase over the past several months in searches for information on used cars.
According to MyRide.com, nine of the top 100 search terms entered on the Web site in September were used car-related, representing 6.2 percent of the top 100 terms' traffic volume. But by February, the most recent month available, that number had risen to 27, or about 21 percent of top 100 terms' traffic volume.
A spokesman for MyRide.com said that the specific used models drivers are searching for are the more expensive models including light trucks, such as the Ford F-150 pickup and Chevrolet Tahoe, and luxury cars like the BMW X5.
From DealersEdge Daily Headlines
March 28, 2008
