Look for June to be a strong month for the retail used-car market.
According to TrueCar, there may be more than 3.24 million used-vehicle sales this month, which would beat June 2015 figures by 5.5 percent.
Those numbers in TrueCar’s forecast include franchised and independent dealers and sales between private parties.
In the first five months of the year, franchised dealers sold approximately 5.3 million used vehicles and independents moved nearly 5 million used units, according to NADA figures cited by ADESA chief economist Tom Kontos.
During an AIADA webinar on Tuesday, Kontos said each of those figures represents a year-over-year percentage increase in the low- to mid-single digits.
“So, that’s healthy,” Kontos said.
He brought up what’s called Say’s law, in that supply of something can generate demand. It wasn’t applied to the used-car business, he said, but it makes sense here.
“Basically, the supply of used cars is generating used-car sales simply because the availability is recovering, so people have more choices out there,” Kontos said. “And the tendency now will be for dealers, I think, to be more aggressive with their pricing because they’re able to get the cars a little bit cheaper at auction, as the supply grows.
“They have a little more selection, so they can optimize their purchases to be right for their market, and then consumers get a little bit of a (benefit) there too from a little bit more ability to negotiate on price,” he said.