It seems the used car market is not as bad as the new-car sales scenario. And ironically, any improvement in the used car market (or nearly new car market) leads to improvement a short time later in the new car market. Tampabay.com has posted an informative article on this used car phenomenon.

Economic uncertainty, tighter credit standards and stronger warranties on nearly new vehicles are luring price-conscious, credit-squeezed consumers away from new cars and trucks to used ones.

Last year, more than 13 percent of new car shoppers left dealerships with a certified used vehicle instead, up from 8.3 percent in 2003, according to CNW Marketing Research in Bandon, Ore.

While new car sales are expected to decline to as low as 10.1 million this year, from dismal sales of 13.2 million in 2008, CNW is forecasting used vehicle sales will grow through 2012. This year, the firm forecasts used car sales of 40 million, up 9.5 percent from 2008’s weak volume of 36.5 million.

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Strength in the used car market is a good sign for the battered new vehicle market, which has forced Detroit’s automakers to close plants, lay off workers and seek federal assistance.

Historically, strong used vehicle sales eventually translate into improved new car sales.

More about the Used Car Market