Why January is a great time to buy a used car, according to The Street.
U.S. auto dealers just recorded their best December new-car sales in six years — making January a great time to buy used vehicles as firms scramble to unload all of the trade-ins they just took in.
“If you traded in a vehicle in December, it’s more likely than not still available [for resale] in January,” says Richard Arca of car-buying site Edmunds.com.
Arca says a confluence of factors should favor used-car buyers in this period:
- Dealers sold 1.36 million new cars and light trucks in December as an improving economy and end-of-year “sale-a-thon” promotions boosted demand. That’s the best December showing since 2007, before consumers felt the Great Recession.
- Strong December sales mean dealers have plenty of used vehicles on their lots, given that about half of new-car purchases involve trade-ins and used cars take around 45 days on average to resell.