Beggs: Demand in Lanes Remains Strong; Buyers Outnumber Sellers
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GAINESVILLE, Ga. –
As buyer demand in the lanes continues to rise — in part due to Hurricane Sandy and the need for replacement vehicles in the Northeast — it seems dealers are turning toward one particular group of vehicles to fill up the lots.
In the latest “Beggs on the Used Car Market” video report, the Black Book managing editor explained interest in 2012 models ramped up this past week.
Detailing the factors behind this change, Ricky Beggs said, “I was less surprised at the strong interest in clean, lower mileage cars and trucks and also the increased interest in this type unit from the Internet buyers. We generally expect this really nice unit to bring out the Internet buyer, but this probably was driven even more so from the Northeast market buyers reaching further out to find the right desperately needed inventory.”
And it seems seasonal demand, as well as the recent natural disasters that increased inventory needs, is affecting the buyer/seller ratio this holiday season.
“As there were multiple reports of ‘more buyers than sellers,’ this supported the fact that prices were at least holding and that demand was up as described by ‘money was looser,’ ” Beggs added.
He also noted during the report that prices in the lanes remain strong leading up to the holidays. Additionally, the editor explained that the used market is reaping rewards from the current strength in new-car sales.
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“Great retail for new vehicles will undoubtedly bring in more trades, which could ultimately be the next retail piece that doesn’t have to be purchased at an auction. At the same time it might be just the right wholesale piece to take to an auction for some lively competitive bidding,” Beggs concluded.
Find the full video report below: