While new car sales have slipped from 2016, robust demand for used vehicles means US car dealerships will still see strong sales this year, industry analysts said Wednesday.
Jonathan Smoke, the chief economist for Cox Automotive, said the data already indicate the shift to more used vehicles is well underway.
“Dealers are selling more vehicles but the mix is changing and shifting from new to used,” he said.
Rebecca Lindland, executive analyst for Kelley Blue Book, said that shift is being driven largely by buyers under the age of 40, who now account for 29 percent of all vehicles sold in the United States and are much more likely to purchase a used vehicle.
“Affordability is a big issue for millennial buyers,” she said.