Pre-owned auto sales on the rise despite gloomy market trends

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Sales of pre-owned automobiles experienced a jump in April, despite all the bad news about dismal new-car sales, embattled GM and Chrysler dealerships and federal bailouts. The trend can be expected to continue throughout the near term.

This comes as good news for dealerships with large pre-owned stock, as the used-car market stimulus has allowed them to remain profitable despite a dramatic decline in new-car sales throughout the first quarter of 2009.

Thanks to a drop-off in automobile demand toward the end of 2008, early 2009 presented plenty of used-car bargains for consumers. In the last few months, buyers have begun taking advantage of the deals and, as a result, used-car inventories are beginning to dry out.

This could be a potential lifesaver for dealers drowning in 2009 stock, because as the used-car market tightens, prices inevitably will rise to a point where consumers are once again willing to splurge for a new car. Congress’ proposed ‘Cash for Clunkers’ deal also should help to slow used-car demand and push buyers toward new cars.

Fancy a slightly-worn Aston Martin DB9 for under $80k? There are a few lingering around in SoCal showrooms, no joke. Could make for an interesting Memorial Day splurge. So long as you can secure financing, of course.

-- Brian Alexander

Brian Alexander is a staff writer for Driverside.com