While sales of new cars and light trucks sank 5.6 percent in the first five months of 2001, business has picked up at used-car lots, according to the Atlanta Journal-Constitution.

Art Spinella, general manager of CNW Marketing/Research, estimated that used-vehicle sales are running 3.5 percent to 4 percent ahead of last year, following a historical trend. "As new cars go up, used cars go

down, and vice versa," Spinella said.

Spinella estimated manufacturers have increased incentives to an average of $2,200 per vehicle from about $1,500 last year, and that the hefty discounts will lure some consumers who intended to buy a used vehicle.

Paul Taylor, chief economist for the National Automobile Dealers Association (NADA), said used-car prices are relatively flat. The average transaction price for used vehicles sold by franchised new-car dealers is about $13,650 this year, up 1 percent from about $13,500 a year ago. Average transaction prices for new models have climbed 2.5 percent, to $25,485 from $24,876.