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February definitely a good month for new car sales all the big US auto makers posting gains but the really hot market is -- used cars that's live you can get your hands on any of inventory of -- seller of these joining me today.
Is wake of the auto group -- dot wake up with more on the -- -- had to go.
To keep used cause -- -- -- -- thanks for being with us.
You'd -- -- experienced this firsthand why is this such a shortage of used -- Whether it's a it's a pleasure to be on the show that the reason there's a shortage if you look back at 200820092010.
We only sold about ten and a half million.
New vehicles a year and we were training about seventeen million year prior that in 2007.
So there's a huge shortage of vehicles.
This year there's going to be approximately.
Twenty million vehicles available under seven years of age normally it's about 24 -- -- so we're down 20%.
In available use cars for resale.
Under seven years of age so.
When you're looking at forty point five million used vehicle sales where we're gonna have a -- and were out there right now trying to buy any and everything we -- in these car market and have what it what's.
To what lengths of he had to go to find.
-- inventory new stock.
Well we're we're doing some creative stuff we've got billboards all over town we've -- box trucks that are -- up.
Obvious some of -- some of the really creative stuff that we're doing and we're scrapie web sites like -- -- dot com cars dot com about Craig's list.
And he's great these and then we need to recall a private individuals that are selling these vehicles or send in the tax.
Try to make contact try to buy the car directly from the individual.
And we find out one out of four times -- looking for a car also were able to sell something our goal is to -- the pre -- vehicle you know.
My father had a saying a car well modest half sold them was spent -- half of our time right now buying cars and the other half -- and well I -- normally you know supply and demand when there's not enough supply prices go up and is that the case.
That's not absolutely the case.
Right now the average used -- is -- still -- in about 111300.
One year old cars is close 120 some thousand dollars but yet the prices are going to be up to grosses are gonna be up for the dealers but there's just not going to be enough inventory.
In what really makes this -- there -- a lot of people today with impaired credit and how we did a study with are -- credit bureau and now over 40% of the people that applied at our dealerships.
Headed beacon score under 600 and those people usually can only get used car so there's -- gonna via.
A high demand for pre owned vehicles this year and there's just not going to be enough inventory and I believe that's why the manufactures right now are basically manufacturing used cars -- When you look at Hyundai have -- not 187 a month lease.
For 24 months cars depreciate more than 187 months yeah so we believe what they're doing right now they're creating a market down the road for a pre owned vehicles and -- -- back up to 79 -- And quickly dug -- mean it it gets the point of the prices go up so much that they knew costs possible bad.
If you review credit is not too bad in shape you know you get some great deals -- a new comment but the payments might work out to be almost the same as a used vehicle.
What -- payments might be less a majority of people and our market our payment buyers they're not they're not cash buyers so.
That that factors -- again credit worthiness comes into the play with that.
But dollar would looking for a good year with pre owned vehicles but I'll tell ya I think it's going to be a a major shortage right now and again.
We're spending all of our time -- they're trying to buy cars are selling them doesn't seem to be a problem buying the right used cars right now seems to be the issue we wish you the.
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