These four things we know for sure:
– Gas Prices are declining and set to retreat more by the end of the month
– New Car Inventories are at lightest levels since Cash for Clunkers
– Used Car Prices – especially inexpensive cars are going through the roof
– KBB sites Luxury SUVs up almost 8 percent in May vs. April
So how do you leverage these factors into a strategy?
Right now may be the time to start increasing the percentage of your used inventory that you keep in Luxury vehicles. I believe these four factors, combined with a weaker interest in May on new retail units as well as new hybrid vehicles, are going to turn a number of new vehicle shoppers into Used Intenders – and my personal belief is they are not going to settle for “less car for less money” but instead be looking for “more car with the same money” than they originally planned on spending.
Just like all pre-owned inventory, these pre-owned luxury units are going to be hard to come by but I would hedge my bets on them keeping their values better than the lower end pre-owned segment.
John Paul Strong