Here's an interesting trend in used car sales uncovered by CNW Research in its monthly report on car buying: consumers are no longer buying just for the sake of buying. They're becoming more fickle in their purchasing habits, not because they can't afford the used cars, but because they're holding out for the right used cars.
The October report says, "Demand for used cars remains high, however. The number of consumers looking for a used vehicle has actually grown in the past year to 1.9 million (October '09) vs. 1.6 million (October '08). But finding a car or truck that consumers are willing to acquire is getting tougher precisely because inventories are thin. Among those looking for a one to five-year model, fewer than 28% have located a vehicle meeting their criteria (regardless of price segment) during the third quarter of this year. That compared to over 51% in the first quarter and 41% in the second quarter."
CW Research blames it on tight inventories, but it's more than that. Buyers have the money but they're not willing to settle as they may have in the past. Buying habits like that are going to drive more competition in pricing. Consumers should have the upper hand in the coming months even if inventories are tight.
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