Consumers Holding onto Cars Longer - Dodge Nitro Forum
Off-Topic Discussion If you have something to discuss that is not related to the Dodge Nitro, post it in here. Keep it work safe!

LinkBack Thread Tools Display Modes
post #1 of 1 (permalink) Old 11-08-2010, 12:05 PM Thread Starter
Super Moderator
rickaren's Avatar
Join Date: Nov 2006
Location: Indiana
Posts: 22,856
Consumers Holding onto Cars Longer

Consumers Holding onto Cars Longer

Nov 08, 2010

We always try to run news stories that help people who are looking for a new car. According to a new study, consumers are buying new cars less often than they used to.

R.L. Polk & Co., an automotive industry research firm, tracks how long consumers hold onto their cars. “The average length of ownership of new vehicles continues to increase . . . Consumers are now holding onto a new vehicle, on average, for 63.9 months based on second quarter 2010 data, up 4.5 months from the same time last year,” Polk writes.

There are a number of reasons consumers are keeping their old cars and waiting to buy new ones. The economy is one. “Since the global economic meltdown and the devastating effect it had on the world's automakers in 2008, that average length of ownership has increased dramatically at a clip of more than 14 percent,” says Autoblog.

Kicking Tires agrees that the economy is behind the numbers but also adds that better-made cars that last longer also probably plays a role. Plus, they say, “The increasing frequency of 60- and 72-month car loans would contribute as well.”

Consumers hanging onto their cars longer not only affects new car sales. It also affects used car prices. “Used car prices have increased as consumers are holding onto their current vehicles longer,” writes Reuters. People holding onto their cars limits the pool of available used cars, which drives prices up. The opposite is true for new car prices. Reuters says that longer ownership periods have “been a weight on new car prices.” That’s because a shrinking pool of new car shoppers limits demand, which keeps prices down.

What does this mean to you? If you’re in the market for a new (or new-to-you) car, you may find that used car prices are higher than you expected. Shop new cars, however, and you may find that dealers are willing to negotiate, incentives are generous and you could end up saving some cash.
LINK: Consumers Holding onto Cars Longer - U.S. News Rankings and Reviews


Nitro Year: 2007 (1 of 91,815 sold in 07)
Nitro Model: R/T 4X4 Stone White
CAT-BACK Exhaust, CAI, Projector Head Lamps
Fully-Equipped w/all factory options
rickaren is offline  
Sponsored Links

  Dodge Nitro Forum > Off-Topic Area > Off-Topic Discussion

Quick Reply

Register Now

In order to be able to post messages on the Dodge Nitro Forum forums, you must first register.
Please enter your desired user name, your email address and other required details in the form below.

User Name:
Please enter a password for your user account. Note that passwords are case-sensitive.


Confirm Password:
Email Address
Please enter a valid email address for yourself.

Email Address:


Currently Active Users Viewing This Thread: 1 (0 members and 1 guests)
Thread Tools
Show Printable Version Show Printable Version
Email this Page Email this Page
Display Modes
Linear Mode Linear Mode

Similar Threads
Thread Thread Starter Forum Replies Last Post
Dodge Magnum: longer wheelbase, Heat rickaren Chrysler/Dodge/Jeep News 2 06-24-2010 10:09 AM
Geely Holding Group has agreed with Ford rickaren Chrysler/Dodge/Jeep News 0 11-30-2009 04:23 PM
Cautious consumers, lenders blamed rickaren Chrysler/Dodge/Jeep News 0 07-02-2009 03:25 PM
People keep cars, trucks longer rickaren Chrysler/Dodge/Jeep News 0 02-22-2008 02:32 AM
Stratus is no longer part of the Dodge lineup. rickaren Chrysler/Dodge/Jeep News 0 01-06-2008 10:20 AM

Posting Rules  
You may post new threads
You may post replies
You may not post attachments
You may not edit your posts

BB code is On
Smilies are On
[IMG] code is On
HTML code is Off
Trackbacks are On
Pingbacks are On
Refbacks are On

For the best viewing experience please update your browser to Google Chrome