Local used car sales booming

More people are buying their cars used rather than new and because of it some local used car dealerships are already doing than they did in 2014.

The big reason is because more people are trading their cars in when buying a new one. With more people trading in, the inventory for used cars increases and that means the prices are more likely to drop – which means more people are likely to make the purchase.

The One Stop Auto at 480 N. Fourth St., in Pocatello has already surpassed their 2014 sales by 20 to 25 percent. Ken Rawlings has been the general manager for One Stop Auto for nearly 15 years and even he was shocked by the numbers.

“If you got a good selection and a lot of cars to choose from; people seem to come in to look,” he said.

The high number of available vehicles also helps interest rates drop. Over at Lithia Chrysler Jeep Dodge RAM of Pocatello, which sells used and new cars, there has been an 18 percent increase from their 2014 sales.

Dave Dunn, general manager of Lithia, says the lower interest rates are possible because of the push by manufacturers.

“All manufacturers right now are pushing market share,” said Dunn. “Everyone wants to beat the other manufacturer. When that happens we’re able to see lower interest rates and that does create somewhat higher demand.”

Rawlings and Dunn think Idaho’s unusually mild weather has a lot to do with their success. Also, because of the low gas prices, trucks and SUV’s are getting included in the used car mix.

Thanks to the early success, both Rawlings and Dunn are optimistic of the coming months. Tax season is usually a good time of the year for used car sales since people tend to use their tax returns as a down payment for a car.

“The way the trend’s been going, used cars are going to do pretty well,” said Rawlings.

The National Automobile Dealers Association predicts 40 million to 42 million used cars will be sold this year. New car dealerships are expected to contribute a little less than half of that number.