How Will New & Used Sales Pan Out This Month?

Used-vehicle sales will approach 2.9 million units this month, according to estimates from TrueCar.com released this morning. The site is projecting a new-to-used sales ratio of 1:2 for March.

This prediction follows the forecast of CNW Research earlier this month, which called for 2.95 million used sales. Each forecast includes numbers for franchised and independent dealers as well as private-party sales.

Should CNW’s projection come to fruition, it would represent the strongest March for used sales in 11 years, according to the firm.

“Of course, this strength is simply because of the recession causing many potential used-car buyers to postpone a purchase until the economy improved, causing a backlog of pent-up demand,” said Art Spinella, CNW president.

On the new-car side of the market, Kelley Blue Book is forecasting the best month — March or otherwise — in more than five-and-a-half years.

Specifically, KBB said in a release this morning there will likely be 1.45 million new units sold, the strongest monthly figure since August 2007.

“Sales will be boosted by record low interest rates and a slowly improving job market, which recently saw the unemployment rate and new unemployment claims fall to five-year lows,” said Alec Gutierrez, senior market analyst of automotive insights for Kelley Blue Book. 

“In addition, with attractive financing and ample inventory to choose from, many people receiving tax refunds will use their returns toward a down payment on a new vehicle this month.”

Joe Overby can be reached at joverby@autoremarketing.com. Continue the conversation with Auto Remarketing on both LinkedIn and Twitter.