There is a surge in the used car market. Cars’ values depreciate rapidly in the first two years after they are purchased. And IU Dean of SPEA John Graham says since the economy is still struggling, Americans don’t have as much money to spend on a car that just came off of the auto line.
“The market for new cars has been depressed all the way since 2008. So what’s happening is a lot of people are driving very old cars and millions of Americans are out there driving cars that are 10, 15 and 20 years old and they need to replace them. But, people don’t have the income or the access to credit to buy a new car,” he says.
Bloomington Ford Used Car Manager Curt Peyton says his company averages about 85 used cars sales per month, an increase over from 60 sales per month last year.
“Hybrids have continued to come more popular now,” he says. “What we see there more economically is obviously that becomes a supply and demand. The hybrids are still a little hard to get, so when we get them we have a lot of interest.
Peyton adds gas prices are raising the demand for hybrid cars. On average, he says, those vehicles are sold 14 days sooner than other used cars.