725 S Garfield Ave
Traverse City Mi 49686
Garfield Auto Service Center
725 S Garfield Ave
Traverse City Mi 49686
Ph. 231.929.3862
Fax 231.932.7511
Email us 

It's A Great Time To Buy A Used Car

August 5, 2020, 12:00 am

Are you car shopping right now? Whether you’re looking at new or used vehicles, you might find some great bargains. 

Across the country, Americans are driving less than they have in decades. Even as states hit the second and third month of cautious reopening, practices like working from home and fewer group events have meant that sticking close to home is the norm. Travel in general is down, as measured by important data indicators like direction requisitions, airline bookings, and hotel reservations. 

The same stoppages that have caused economic strike for small businesses also affected some of the world’s biggest manufacturers as well. With production at a standstill in the US for over a month, plus the fallout from historic unemployment, cause car sales to plummet in April, May, and June. 

There are signs of hope, however. While many of the biggest automakers only announce quarterly earnings, some brands still release monthly numbers as well. Those show some mixed results. 

Hyundai and Mazda were two manufacturers showing growth, up 1% and 3% month year-on-year. They were the bright spots, with brands like Subaru down 20%, Honda (11%), and Toyota (22%) showing just how challenging current market conditions are. 

Hyundai attributed their strong month to having consistent inventory across the US market. That’s put the brand in a good position as compared to its rivals. When things have been bad, most notable in March and April, Hyundai suffered less than others, reporting an 18% loss in revenue in Q1, while most brands saw losses closer to the 25% mark. 

The brand’s Tucson and Santa Fe models led sales, with the new Palisades making a huge jump in sales to be its third best model. The success of mid-size SUVs and crossovers follows the industry trend, with sedans and luxury brands seeing the biggest hit. Historically low fuel prices have driven the trend over the past three years, and with oil prices still anemic, that’s not expected to change anytime soon. 

For those looking for something used, you’re not alone. Used car sales jumped 17% year-on-year in June for a number of reasons. The $1,200 stimulus checks sent out certainly played a role, but other factors pushed buyers towards used lots as well. First, inventory. Not all brands had cars available to buy, leaving shoppers more choice in used vehicles. Many brand turned toward heavily promoting certified used programs featuring one and two year old cars and trucks as inventory remained sluggish. 

New car sales aren’t expected to improve any time soon, and we should see another increase in used car sales heading into fall, especially if Congress approves a similar stimulus package that includes direct cash payments to families and extends federal unemployment benefits. 

Posted by Garfield Auto at 12:00 am
Add Comment Add Comment (0 comments)
www.garfieldauto.com 5 5 1 4