As U.S. Car Sales Pick Up, Trade-ins are Older

As U.S. Car Sales Pick Up, Trade-ins are Older The economy remains wobbly, unemployment is still high and yet people are buying new cars at a pace that would suggest a sweeping wave of prosperity. S. motorists who had purchased a car new hit a record 71 months. Likewise, retention of vehicles originally bought used climbed to an all-time high of 50 months. Caldwell and other analysts believe significant numbers from those groups are buying new now, even though economic conditions may not be ideal. "One of the things we're seeing among buyers is that the average credit score is going down," Caldwell said. But now, no such rebate program exists. Auto sales figures for March will be released this week, and most credible industry trackers are projecting a U. For Roseville resident Rebecca Price-Young, it was last month, as she shopped the Roseville Automall to part with her old ride, a 1996 Toyota Corolla. "We have a 3-year-old family wagon . David Rodgers, senior vice president and general manager of the Sullivan Automotive Group, which oversees John L. "The average (age) is running about three to four years older than what we were seeing before (the recession), but the mileage is what is really noticeable," he said. Analysts say the evidence is irrefutable: Consumers who were holding onto aging cars through the recession are finally returning to the new-car market. "I think people are hitting the breaking point, where they're saying, 'OK, it's better to get a new car than put more money into the old one,' " said Jessica Caldwell, senior analyst for Edmunds. Other beneficiaries of increasing car sales are lenders. Numerous analysts were citing "pent-up demand" for new autos even during the darkest days of the recession. "We've finally saved enough money where I can get a new car for me. "If gas prices continue to raise, as expected over the spring and into the summer, we will continue to see record average fuel economy of newly purchased vehicles," said TrueCar analyst Jesse Toprak. Sacramento-based Golden 1 Credit Union, with more than 80 branches and 600,000 members, said the number of auto loans it made in January and February was up 35 percent compared with the year-ago period. Golden 1 said vehicle loans make up about 34 percent of its loan portfolio, and 40 percent of all loans made last year were auto loans. "We are pleased to see the beginning of improved consumer confidence resulting in growth in automobile sales throughout the many markets served by Golden 1," said Donna Bland, credit union president and CEO. Analysts warn, however, that sales are still short of pre-recession levels. In California, CNCDA said statewide sales averaged about 2 million between 2000 and 2006. "I think that we are able to get 16 million, but I don't think it will happen this year or next year," she said. "I was getting ready to buy new back in 2008, and then the wheels came off our (finance s)," he said. "Now our daughter's out of school, and it's time to get a whole new car which will run a long time and . New-car sales started edging up in California and other states in 2010, but there were still signs of consumers holding back late last year. In last year's third quarter, R. And she said buyers are increasingly being more frugal amid high gas prices. "We don't see as many large SUVs being purchased . Sullivan group's Rodgers said "there has been a major change in the dynamic, with (consumers) looking for cars getting 30 miles a gallon or above . Car and truck sales have done a complete reversal from 2008. 9 miles per gallon, up from 22 mpg in January 2011 and 22. It's not as strong as the smaller-car segment," Caldwell said. As U.S. Car Sales Pick Up, Trade-ins are Older Trade News selected by Local Linkup on 03/04/2012