Get Set for Used-Car Upturn in '05

Remarketing of used cars has moved from an afterthought to a sales tool that can boost new cars, says Raj Sundaram, president of Automotive Lease Guide. The used-car market will enjoy a growth rate in 2005 and 2006 when three-year-old loans and leases issued in the post-9/11 boom years come due, Sundaram forecasts. Dealers should be prepared for the upturn, which will reflect on certified volume,

Remarketing of used cars has moved from an afterthought to a sales tool that can boost new cars, says Raj Sundaram, president of Automotive Lease Guide.

“The used-car market will enjoy a growth rate in 2005 and 2006 when three-year-old loans and leases issued in the post-9/11 boom years come due,” Sundaram forecasts. “Dealers should be prepared for the upturn, which will reflect on certified volume, reconditioning demand and re-leasing opportunities.”

He urges auto makers to emulate the examples of BMW and Honda in presenting their new 3-series and Civic models respectively in ways “that protect their values at the back end.”

He adds, “Perhaps more than ever, perceptions of values in remarketed cars sustain the images and consumer demand for those cars as new models.”

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