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Robust New-Car Sales Creating Used-Car Bargains

by Staff
January 31, 2002
2 min to read


A robust year for new-car sales has put buyers of used cars in the driver's seat, experts say, as hot competition and an unprecedented number of quality trade-ins have made for one of the best markets in history, according to the Chicago Tribune.


The 17.2 million new cars sold last year --spurred by zero percent financing and other incentives -- have flooded used-car lots

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with trade-ins. To avoid a glut, bargains are plentiful, according to industry observers.


The trend of low-priced used cars is expected to

continue throughout the year, according to the National Automobile Dealers Association (NADA). New-car sales are expected to slow somewhat this year, as many customers who would normally have bought in 2002 were lured in early by hot incentives.


"Interestingly enough, even though there's a very large [used-car] inventory, dealers are really selling the heck out of those vehicles," said Jason Altman, an economist for NADA. "You might see a very good quarter, because they need to move those cars."


Smaller, independent dealers have felt the pinch as customers have either opted for the suddenly cheaper new models or shopped at better advertised big lots, according to the Tribune.

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Dealers sold an estimated 12.8 million used vehicles in 2001, a number Altman sees holding steady or even improving if the economic picture continues to brighten. "As the economy

gets stronger, that will be a boon," Altman said. "Things could still prove to be very good in 2002 for used-car dealers."

Topics:F&I

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