The Auto Channel
The Largest Independent Automotive Research Resource
The Largest Independent Automotive Research Resource
Official Website of the New Car Buyer

Used Vehicles Show Signs of Recovery


PHOTO (select to view enlarged photo)

New Vehicle Sales Continue To See Challenges

ATLANTA, February 5, 2009: In its first month on the market, the newly-introduced Nissan 370Z joined the AutoTrader.com Top 20 Most Viewed vehicles for the first time, showing a 209.91% increase in views over the previous-generation 350Z that it replaces. As consumers' fears surrounding the economy continue to keep many from purchasing a new car or SUV, niche sports cars such as the 370Z, Dodge Challenger and Chevrolet Corvette continued strong showings on the list. While many consumers performing searches for these niche vehicles might not purchase one, these cars' status as brand icons serves to attract consumers to their respective manufacturers' more mainstream offerings.

Among more mass-market new vehicles, the largest gain overall was with the Honda Pilot, which nearly doubled its views from the previous year, moving it up from 64th position in January 2008 to 16th this January. Another strong performer was the redesigned Dodge Ram 1500, which saw a nearly 50% increase in views year-over-year. Other vehicles with increased searches included the Ford F-150, fresh from its win as the North American Truck of the Year, awarded at the North American International Auto Show in Detroit, which saw a modest increase of 15.01%. The Honda Odyssey minivan increased views 35.40% from January 2008.

Among sedans, the Honda Accord, Honda Civic, Nissan Altima and Toyota Camry all saw a decrease in views ranging from 23.19% to 35.80% year over year. And while General Motors larger trucks and SUVs, including the Chevrolet Tahoe SUV, Chevrolet Silverado pick-up and the GMC Sierra pick-up, all saw slight drops, ranging from 1.93% for the Tahoe to 16.67% for the Silverado 1500, the drops were modest compared to other, smaller vehicles.

"Sales of new vehicles continue to slow, though when consumers were shopping in January, they're shopping full-size trucks and SUVs due to average price of gas prices having remained low nationwide," said AutoTrader.com President and CEO Chip Perry. "This points to the difficulties automakers and dealers have in producing and stocking vehicles, as decisions made now can be rendered moot by the time a car or truck actually reaches the lot due to large fluctuations in gas prices and the resulting changes in consumer interest in certain types of cars."

Used Vehicle Market Finally Show Signs of Stabilizing

If the new vehicle market continued to see challenges in January, the market for used vehicles showed the beginnings of stabilization. Many used vehicles recorded only modest decreases in views, such as the Toyota Camry, which was down 7.97% from January 2008. While asking prices among the Top 20 used vehicles continued to fall, with drops ranging from 3.84% for the Honda Civic to 18.74% for the Ford F-250, several trucks actually saw an increase in views year over year, including the Jeep Grand Cherokee (up 2.29%), the Ford F-150 (up 11.73%), and the Dodge Ram 1500 (up 19.48%). This indicates that interest in these larger used models may be returning, which could result in increased sales and eventual stabilization of prices in this segment.

"Most people still need a vehicle, and many shoppers who only considered themselves new-car buyers are considering purchasing used, which offers buyers less depreciation and easier financing options, a still significant concern as access to credit remains restricted," said Perry. "With economic conditions expected to remain tough for at least the next few months, dealers can benefit by making sure they promote both new and used inventory. More and more, consumers looking for a new car but unable to get financing or concerned about higher new-car prices may be convinced to look at used vehicles as another option to meet their transportation needs."