F&I Showroom Magazine

Subscribe | Digital Edition

MENU

Detroit Has the Used Car Blues

by Staff

September 16, 2002

1 min to read

Record new-car sales and lavish customer incentives are creating a bumper crop of used vehicles, according to Fortune Magazine. Indeed, if automakers were in the business of manufacturing used cars, they'd be setting productivity records. Used-car sales are expected to reach 43.5 million this year, vs. 40.9 million in 1999.

The surge in volume means one thing: sinking prices. For instance, the price of a two-year-old Ford Taurus has dropped from $11,700 in 1999 to $10,075 last month, according to the National Automobile Dealers Association (NADA).

The price collapse is a headache of major proportions for automakers. Lower prices on used cars draw buyers out of the new-car market. Yet marketing initiatives by the Big Three are only exacerbating their woes, according to Fortune.

Topics:F&I

More F&I

Photo of a three-seat vehicle back seat

F&I•by Hannah Mitchell•May 22, 2026

F&I Reaches for the Sky

The increasingly important profit center continued making gains in the first quarter, according to StoneEagle data, ancillary products proving more popular as consumers hold onto their buys longer.

Sponsored•May 8, 2026

Timing the Market Can Hurt Long-Term Program Performance

For dealer-owned reinsurance entities, avoiding volatility entirely can mean falling behind inflation and missing market rebounds that drive long term surplus growth. Missing just a handful of strong market days can materially impact cumulative returns—an important reminder for long horizon trust and investment strategies.

Ryan Ruff, The 90/10 Rule, Automotive Training Academy, Sales Series

F&I•May 6, 2026

The 90/10 Rule

In this video, Ryan Ruff explains the rule that elite sales professionals use to turn ordinary conversations into unforgettable customer experiences.

Photo of essential oil diffuser on desk next to laptop

F&I•May 4, 2026

Your Office Is Talking

What’s the atmosphere saying about you to your customers? You can make minor adjustments and additions that transform your space into one that creates trust with the people on the other side of the desk.

F&I•May 1, 2026

F&I Training Fundamentals

How can auto dealerships help F&I managers fulfill their vital role in the most effective ways? Industry expert Rick McCormick shares his insights on the best ways to train these professionals and help them maintain good habits.

Photo of car tire and the tread mark it left in snow

F&I•by Hannah Mitchell•April 29, 2026

Not Just Any Tire Will Do

More consumers and businesses are opting for all-season options for various reasons as safety, sustainability and convenience push practical change.

Photo of robot holding a laptop

F&I•by Hannah Mitchell•April 27, 2026

How AI Will Drive the Next Wave of Innovation in Finance & Insurance

It’s time to take the next digital step to free F&I managers to handle the most challenging aspects of customer meetings.

Photo of notepad and pen next to computer keyboard on desktop

F&I•April 13, 2026

Control in Sales Is an Illusion

Some of it should be given to the customer, but that doesn’t mean the F&I office relinquishes the process. In fact, a different approach both builds trust and boosts sales.

Photo of external keyboard on office deak next to window

F&I•April 7, 2026

The Limited Warranty Game

Bringing it in-house benefits the dealership and its customers.

Woman in casual clothing sitting at a desk

F&I•by Rick McCormick•March 31, 2026

Curb The Confusion

Talk to F&I customers like you’d talk to a friend, without industry lingo or sales-like questions, and use hard proof to show, not tell, them about a need.