Wednesday, July 15, 2009

What you may not know about the Car Market

Talk about the New Car market to anyone and they know that New Car sales are down, and have been for more than six months. New dealers are going out of business left and right, and even car makers are dropping like flies.

But what about used cars? Often times people assume that we're in the same boat as the new guys. Actually, we're in Noah's Arc, and they're....well, they're not really in any boat at all. The truth is that auctions have reported a steady increase in used car wholesale values for the last six months. But wait, prices going up? That's bad, right? Rest assured, it's not because dealers are trying to gouge you on used car prices; it's actually a simple case of supply and its sidekick known as demand.

According to New Car dealers, nearly 2/3 of all new cars sold have a trade-in attached to the deal. With new car sales plummeting, there is a dramatic reduction of trades entering the used car market. As the supply decreases, dealers must fight more fiercely to purchase these cars at auctions. Remember when the Nintendo Wii came out? There were not enough Wii's to go around, not even close, and some people were desperate enough to pay twice what they were worth on sites like eBay and Craigslist. It's a similar situation here, and at times, dealers are buying cars for MUCH more than normal wholesale prices.

During times like these it becomes difficult to purchase cars at auction and still maintain prices low enough to compete or beat the competition. While other dealers out there are paying too much and selling for WAY too much, we have kept prices as they were more than 6 months ago. We're not rising with the tide; we're firmly anchored at where we believe prices should be, not where other dealers are pricing their cars.

So, if you think that the Used Car market is suffering, think again. Our sales are actually up from last year. Why? Well, we refuse to raise our prices like everyone else. We never liked the "cool crowd" anyway. Why would we want to be like them? So if you're looking for deals, look no further. We have some of the lowest prices in the Valley, and we sell many cars to buyers from other states (I guess they can see the good prices, even from far away). Our fees are lower, our tax is the lowest (only 6.3%, compared to 8.1%+), and we're the most laid-back, friendly environment you've ever experienced. Come try this new flavor for'll be glad you did. Thanks for reading!
-Ryan, check it!

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