Shoppers Buying More Used Cars Over New

CNW Marketing Research reports a three percent jump in February compared to last year. New car sales are down 41 percent.

Car shoppers told us they're being more responsible in making a major purchase. Although some have always bought new, they've decided to change their shopping habits and drive off a used car lot.

Kimberly Evans is buying her first used car, a 2006, Ford Fusion. Buying it new would cost her more than $20,000. She's buying it for $11,000. To her, it's just like new.

"It's about 40 thousand miles and very good condition, leather seats, cruise control," says Evans.

Felicia Harris is also making the new to used switch.

"I had an SUV, now I'm downsizing," says Harris.

Ralph Evans, owner of Evans Motors in North Little Rock says sales at his used car lot are up 20 percent from last year.

"The increase is due to customers that are purchasing the need rather than a want purchase. They need something to get to their job," says Evans.

Customers we spoke with say they chose used over new because they wanted the biggest bang of the buck. This includes a low ticket price and excellent gas mileage.

"I needed something comfortable. I drive to Memphis a lot. I also wanted something economically as far as gas is concerned," says Kimberly Evans.

In order for Ralph Evans' business to continue to do well, he needs consumers to also buy from new car dealers. Despite national numbers, he says Arkansas new car sales are holding up.

"They have to buy new before we get them and we want new cars be profitable as well," says Ralph Evans.

Evans says his biggest seller right now are actually used SUVs.

"As long as gas is stabilizing, SUV sales are fantastic," says Ralph Evans.

Some consumers decided to be even more conservative by buying used and small.

"Gas has gone down, but everything has gone up, groceries, and cost of living and everything is going up," says Harris.

"Due to the economy, I need to downsize and not get into too much debt," says Kimberly Evans.

Despite sales going up, Evans Motors says it's not consistent. So, over the past year, it had to lay off full time workers who cleaned and detailed cars. But it was able to retain all sales personnel.

Adesa Analytical Services reports wholesale used car prices rose one percent from January to February.