by CULSBlogger
1. December 2011 03:26
Finding a quality used car for a great price has become a challenge for American consumers – high demand and tight supply make a good deal hard to find. And, though used car values have retreated from their summer peak, experts predict that prices will remain high in the new year.
NADA Used Car Guide Senior Analyst Larry Dixon told Automotive News that the average price of 2-to-5-year-old used vehicles has increased significantly compared to prices listed before the recession began. In fact, figures for August through October were 40 percent higher in 2011 than they were during the same months in 2008.
Seasonal factors won’t help the situation. Dealers usually buy additional inventory in anticipation of the spring selling season, which kicks off as soon as shoppers begin receiving income-tax refunds. Because the supply of available used vehicles is already thin, experts at Kelley Blue Book predict that prices could increase three to four percent in the first quarter instead of the usual two percent.
As high prices hold steady and consumers struggle to find a good deal on a used vehicle, credit unions should consider developing new sales tools and resources. Creating an outlet for repossessed vehicles and reminding buyers about the resources available through Credit Union Lending Systems is a great start. What else can your financial institution do to assist consumers in this tight market?
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