Car Buying and Selling Trends — A Mixed Bag

Toyota sales are down 40 percent, leading it to seek help for its finance arm. GM is doing worse and is thinking about an “assurance” program like Hyundai’s for buyers concerned about future job loss. Edmunds states that 27% of people who intended to buy new in February, switched to used. ncentives apparently way up, too, averaging around 20 percent of sticker price.

My thoughts: the move to used vehicles, is a mixed bag. On the one hand, used vehicles can supply great value for consumers. On the other hand, it is a real wild west horsetrading world, full of pitfalls for the unwary and unarmed (with information). Don’t think for a minute that “Certified” used vehicles are much better. I have seen numerous cars that never should have passed “certification,” but were sold as certified anyway. You pay for it in terms of higher sales prices, but at least you usually get extended warranty protection from the manufacturer. Incentive and Assurance programs… well, we’ll see. Incentives are often “clawed back” through dealer add-ons and discounting the value of your trade in. Here is a thought — would GM “assure” its own employees can get payment relief on GM purchases if GM fails and fires them?