DETROIT, M.I. – MI used cars are not at the inventory levels they need to be for most dealerships. Consumers are holding onto their cars for much longer and with far greater frequency which means MI car dealers are feeling the pressure to replenish their stock with MI used cars.
Due to the shortage, dealerships will be paying more for MI used cars now than they have in recent history.
According to the Associated Press, car owners are keeping their vehicles for approximately one year longer than they did in pre-recession years.
"You're not going to find a situation like this very often," Jonathan Banks, executive auto analyst for the National Automobile Dealers Association used car pricing guide, told the Associated Press.
The situation Banks is most likely referring to is the rare combination of a tremendous economic recession, the tightening of credit for vehicle leases and also the devastating earthquake and tsunami in Japan. All of these events occurred in a short time period of a few years but have had lasting effects.
Other relevant information reported by the Associated Press includes:
- An increase in the average age of vehicles on the road: from 9.8 years in 2007 to 10.6 years old in 2011.
- New, popular models of foreign makes such as the Toyota Prius are in short supply due to the Japan crisis, and dealers are grabbing up earlier model years to fill the gap.
Gas prices are also a contributing factor and have created a high demand for smaller, more fuel-efficient vehicles, which are further depleting dealerships' inventories.
There is one other factor car buyers and sellers need to keep in mind as they consider purchasing or selling a vehicle. As the prices of used cars continue to rise and the price gap between new and used cars continues to shrink, there will be a tipping point where buyers will choose to spend a little extra and buy a new vehicle instead of a used one.
Those who may be ready to trade in their MI used cars should know dealerships are paying premium prices now and that MI Auto Times has the tools they need to not only get them the value of what their used car is worth, but also to connect them with the dealership that's ready to buy their car for the amount given.
For more information about how to get the best value for your trade or to read our complete MI Used Cars Buying Guide, visit http://www.mi-used-cars-miautotimes.com
MI Auto Times has many resources to help you with your new or used car search.
Read up on automotive industry news at our home page: www.MIAutoTimes.com
Browse vehicles in our Classifieds section - www.mi-used-cars.miautotimes.com/
Rate and review local dealers – www.miautotimes.com/mi-dealer-ratings/
[Source(s): Associated Press, Detroit Free Press]
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