Used Car Sales Up, New Cars Down Statewide
Used car sales are up across the state. Premier auto general sales manager John Erickson believes the primary reason…is price.
“If you look at it…the average price of a new vehicle today is around fifty thousand dollars,” says Premier Auto general manager, John Erickson. “You can save so much more money when you look at a vehicle that is one to three years old…compared to buying a new vehicle.”
“We see consumers now trading in vehicles that have one hundred and fifty…one hundred and sixty thousand miles. That still look very new.” Erickson adds. “Mileage…as long as you take care of the vehicle, nowadays the cars and vehicles will last a whole lot longer.”
Greg Kirkpatrick of the Arkansas Automobile Dealers Association expects new car sales to drop from roughly seventeen to sixteen million this year. On the flip side, new car prices, are up almost three percent.
“I think it’s a product of consumers demanding more out of their new cars…" says Kirkpatrick. "They want the newest, they want the best…they want the safest. They want the best looking. And that’s just…you’re always gonna see an uptick in price.”
A-state marketing professor Dr. Shane Hunt says age and income are big factors.
“Young people have become much more accustomed to using car sharing services, or ride-sharing services like Lyft and Uber. And I think the number of young people doing that, puts off their desire to buy new cars, which reduces their demand overall.” adds Hunt.
Consumers that want to buy new are advised to monitor the web for deals.