Comments on: Used vs. New Floor Traffic http://www.dalepollak.com/2008/05/02/used-vs-new-floor-traffic/ Thu, 21 Aug 2008 17:45:56 +0000 http://wordpress.org/?v=2.5 By: Carguy2008 http://www.dalepollak.com/2008/05/02/used-vs-new-floor-traffic/#comment-43 Carguy2008 Tue, 06 May 2008 11:01:46 +0000 http://www.dalepollak.com/?p=54#comment-43 Dale- This is an interesting observation. So, we checked the mix of leads coming in to about 100 dealers who are using our Black Book Online service. In 2007 the ratio was 68% new vehicle requests but in 2008 new vehicle requests dropped to 58% of the mix. Krouse is correct in noting the shift. It looks like payment, credit and consumer attitude are driving this shift. Dealers may also benefit from the higher gross margins on the used business as well provided they see the opportunity to keep their lots properly stocked and have the talent in place to leverage the opportunity. We will watch this trend and report any changes here. Dale-
This is an interesting observation. So, we checked the mix of leads coming in to about 100 dealers who are using our Black Book Online service.

In 2007 the ratio was 68% new vehicle requests but in 2008 new vehicle requests dropped to 58% of the mix. Krouse is correct in noting the shift. It looks like payment, credit and consumer attitude are driving this shift. Dealers may also benefit from the higher gross margins on the used business as well provided they see the opportunity to keep their lots properly stocked and have the talent in place to leverage the opportunity.

We will watch this trend and report any changes here.

]]> By: Dale Pollak http://www.dalepollak.com/2008/05/02/used-vs-new-floor-traffic/#comment-40 Dale Pollak Mon, 05 May 2008 14:32:22 +0000 http://www.dalepollak.com/?p=54#comment-40 Mr. Krouse, I think that the economy is pushing a lot of otherwise new car buyers into the used car market. Unfortunately, I also think that a lot of traditional used car buyers are being pushed down into the sub-prime and even the buy-here, pay-here segments. Last week I was interviewed about this phenomena by a New York Times reporter. Your comment validates the shift that I think we're all experiencing in the market place. Thanks for your comment and I invite others to share their thoughts as well. Mr. Krouse,

I think that the economy is pushing a lot of otherwise new car buyers into the used car market. Unfortunately, I also think that a lot of traditional used car buyers are being pushed down into the sub-prime and even the buy-here, pay-here segments. Last week I was interviewed about this phenomena by a New York Times reporter. Your comment validates the shift that I think we’re all experiencing in the market place. Thanks for your comment and I invite others to share their thoughts as well.

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