We now have more data available for 2017’s used car sales, so we can accurately determine how the used car market is doing as a whole. Here, we’ll talk about why these numbers are important and how 2017’s data is measuring up to that of 2016.
The Importance of the Numbers
Many people have a vested interest in knowing how the used car industry is doing. It is relatively easy to get a snapshot of the health of the industry by seeing its performance on a year-to-year basis.
For Consumers – Checking out the sales data for used cars is one way to tell whether you are in a buyer’s market or a seller’s market at the time you are buying or selling your car.
For Car Dealerships – Car dealerships want to know what to expect in the coming months based on how things are currently going. A decline in used car sales could signal stagnancy in the market, and they would have to adjust their advertising efforts accordingly.
For Automakers – Automakers can utilize used car sales data to determine what they should expect in regards to new car sales. If the popularity of used cars is on the rise, it could mean that a decline in new car sales is on the horizon.
To check the health of the industry, you can take this year’s data and measure it against last year’s numbers from the same time. So, when we look at the first quarter of 2016—which consists of January, February, March—and compare it to the first quarter of 2017, we can tell at a glance whether it’s doing better, worse, or about the same.
In this case, the numbers are pretty close, with a difference of just 135,000 cars that puts 2016 ahead of 2017. That’s only a little more than a 1% difference from a record-setting year, so it’s too soon to tell whether or not 2017 will come out on top by the end of December.
Things Are Looking Pretty Good
The current sales data suggests that the used car market is doing well overall, all else being equal. After such a big year, it would have been rather ambitious to expect 2017 to top those numbers.
Here are three reasons why 2017 is holding its own:
More Cars Are Hitting the Market – With more and more used cars reaching the market, consumers are inundated with choices. Car shoppers can also find great deals on freshly turned-in leases, so it is possible to get a car with low miles and in like-new condition at a reasonable price.
More Buyers Entering the Used Car Market – Within the used car market, there are more buyers than ever before. Even those with good credit are opting for a used car instead of footing the bill for the depreciation of a new one.
Still Easy to Get Auto Loans – Interest rates are still attractive, and it is relatively easy to get an auto loan—especially for a used car. You don’t have to have stellar credit or much of a down payment to get approved for a loan. As long as there is a glut of new cars and credit is still easy to get, the market should stay strong.
Will 2017 Set New Records?
It doesn’t appear that 2017 will be a record-setting year for the used car industry, especially after the big numbers 2016 brought to the table. However, simply keeping pace with 2016 numbers would be a positive thing.
The latest data indicates a further slowdown in the second quarter, which suggests that things could be returning to pre-2016 numbers. However, this would not be an earth-shattering event for the industry, and it wouldn’t necessarily indicate that things will keep getting worse and worse. It could just be the industry correcting itself and normalizing.
Need a Used Car?
We have a large selection of used cars to show you here at Ride Time, and we can help get you into a great car at a fair price—no matter your credit situation. Give us a try today, and see just how quick and easy the process can be.