Economical rides in big demand at used-car lots in Boulder Valley

Gloomy economic outlooks blast consumers from across the globe, but for some in Boulder County’s used-car business, things trend toward the rosy rather the gloomy right now.

Chris Hughes, pre-owned vehicle manager at the Boulder Toyota-Scion dealership, has seen up to a 5 percent increase in used-car sales in recent months.

“I think the economy definitely plays a part in that. People are looking for more of a value in pre-owned cars,” Hughes said. In uncertain economic times, many customers want to keep their payments low, and a used car can offer smaller payments with little compromise on vehicle reliability.

Toyota certified pre-owned vehicles – or vehicles certified by Toyota and the dealership to meet certain quality and mileage standards – allow customers to buy used but with close-to-new confidence in the vehicle, Hughes said.

Additionally, Toyota offers financing for some pre-owned vehicles, which can be an added attraction to customers in a market where credit isn’t as easy to get as it was a short while ago.

“The credit has definitely tightened up. The nice thing about Toyota is they do have money readily on hand to lend,” Hughes said.

The surge in gas prices earlier this year added to Toyota’s appeal, too, with many people abandoning large gas guzzlers for smaller, fuel-efficient cars. Toyota’s Prius hybrids flew off the new-car lot earlier this year, making them hard to stock. This drove Prius buyers to pre-owns to fill their desire for the little hybrid.

Car buyers’ flight from sport utility vehicles and large cars peaked when gas prices hit $4 a gallon, but winter’s approach and lower gas prices seem to be luring customers back.

“That’s bounced back. I think people have renewed faith, and they need the vehicles with our winters,” Hughes said.

Gas prices and consumer need impacted used-car sales at Boulder’s Flatirons Subaru, too, said Flatirons Subaru’s Gary Jackson. While sport utility sales tapered a few months ago customers often chose to compromise rather than sacrifice all their space for better gas mileage.

“In the beginning of the summer we really saw a shift from the sport utility vehicles to the gas misers, but they still needed the (larger) vehicle to meet their family needs,” Jackson said. Now sport utility sales are coming back, he said.

New-car sales took a bigger hit this year than used sales at Flatirons Subaru, which is one of the largest Subaru dealers in the country. Flatirons Subaru’s strong reputation in the community, good customer service and quality product have helped them weather the downturn, Jackson said.

“With our reputation in the community we have a pretty solid standing and a lot of repeat business,” Jackson said. Carefully reconditioning the used cars that come to Boulder Subaru also helps ensure customer satisfaction.

“Our used-car sales have remained pretty strong while the new sales have seen some fluctuation,” Jackson said with used sales down about 5 percent this year. Adjusting inventory stock for good turn around helps business, too.

The call for used cars reached Satch Desai, owner of Longmont-based Auto Brokers and Consultants. Auto Brokers and Consultants, started a year ago, finds new or used cars for customers as a free service and collects fees from car dealers.

“What we have been noticing is that first of all people have been asking for used cars much more than new cars,” Desai said. “They’ve been asking for smaller cars rather than SUVs at maybe 90 to 1,” Desai said. A trend specifically related to customers’ desire to save gas. Desai added that Boulder County customers gravitate toward imports, such as Toyotas and Subarus.

Mark Biancaniello, sales manager of Prestige Chrysler Dodge in Longmont, has seen a change in what his customers are looking for at Prestige’s pre-owned center, too.

“We get a lot of agricultural needs and most were driving diesel trucks, so you get people trying to downsize,” Biancaniello said. This led to drop in SUV prices that could benefit interested customers.

“There are some real bargains out there … in the SUV and full-sized car market,” Biancaniello said. Prestige, a domestic car dealership, saw a drop in customer traffic and sales this year, but Biancaniello thinks it has hit bottom.

“I think we’ve seen the worst of it. I think we’re going to see a slow improvement in the car business and every other business across the board.”

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