Used car sales rise as buyers shun new cars, according to MSN Autos.
Used-car sales took a leap upward in April, and the trend is expected to continue at least until midyear as pent-up demand for affordable pre-owned vehicles jacks up at least one segment of the car marketplace.
Sales of new cars continued an unabated slide toward what analysts say is a 30-year low in the United States, but used-car sales showed strength as buyers unable to finance new cars shifted their sights to less expensive used models. As a result, retailers such as the large Penske Automotive Group reported that despite an overall decline in sales in the first three months of 2009, improving used-car sales kept them in the black.
Loosening credit for used vehicles, combined with the public perception that loans for new vehicles remain tight, has fueled a spike in used-car sales, said analyst Art Spinella of CNW Marketing Research. CNW, which tracks new- and used-car sales, projects that new-car sales will top out at 10.1 million this year, while used-car sales are expected to jump to 40 million, a 10 percent increase over a credit-crunched 2008.