CNW Reveals the Largest Percentage of Used Shoppers Turn to Older Units
BANDON, Ore. — The latest data from CNW Research indicates that 67.6 percent of used shoppers are looking to purchase units five years old or older.
Overall, the largest percentage of used shoppers is honing in on the eight- to 12-year-old category at 34.4 percent, CNW pointed out.
Next in line are consumers looking for a unit that is one to four years old at 32.4 percent.
However, CNW's data found that consumers intending to purchase units that fell within the five-year-old to seven-year-old segment, or the 13-year-old or older category are slowly gaining ground.
Shoppers showed a slight upswing in their interest in the five- to seven-year-old category, up to 13.4 percent from 13.1 percent in 2005 and 12.3 percent in 2003.
The largest jump, however, came about in the 13-year or older segment, where 19.8 percent of used shoppers indicate their interest. This is up from 15.4 percent in 2005, but down from 20.3 percent in 2003.
"The share of used vehicles sought by used-car shoppers that are over 13 or more years old has grown in the past two years," reported Art Spinella, of CNW.
"That, plus the potential for significant profits, has lead to a growing number of franchised new-car dealers to move into the Buy-Here, Pay-Here business, typically with a lot off-location from their franchised store," he continued.
"While the numbers for true BHPH lots are small, they are growing steadily," Spinella explained. "In the first quarter of 2006, there were about 4,200 BHPH lots. Today, there are 4,800. Those owned by franchised new-car dealers have grown from fewer than 370 to more than 475."
He classified "true" BHPH lots as stores that carry their own paper, operate their own collections and rarely sell their loans to third parties.
Breaking down the statistics, CNW discovered consumer interest in the following categories:
One- to four-year-old units:
CY03, 16.1 percent
CY05, 27.8 percent
CY07, 32.4 percent
Five- to seven-year-old vehicles:
CY03, 12.3 percent
CY05, 13.1 percent
CY07, 13.4 percent
Eight- to 12-year-old models:
CY03, 51.3 percent
CY05, 43.7 percent
CY07, 34.4 percent
13-year-old or older vehicles:
CY03, 20.3 percent
CY05, 15.4 percent
CY07, 19.8 percent
For more information on CNW, visit www.cnwmr.com.