In the first five months of 2001, business has picked up at used-car lots, according to the Chicago Tribune. Art Spinella, general manager of CNW Marketing/Research, based in Bandon, Ore., estimates that used-vehicle sales are running 3.5 to 4 percent ahead of last year,

following a historical trend.

Last year, the industry sold a record 17.4 million new vehicles, and retail sales of used vehicles dropped to 40 million from 43 million. This year, as new-vehicle sales cool, Spinella expects used vehicles to bounce back to nearly 43 million.

Sales of used vehicles may be up, but Paul Taylor, chief economist for the National

Automobile Dealers Association (NADA), says 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 in the last year.

Rebates of $1,500 and more may be pushing new-vehicle buyers toward higher-priced models,

according to Taylor, because "with incentives, you can get more car for the same money."