A number of businesses are experiencing a slowdown in sales because of a slump in the province’s economy but used auto lots are actually thriving as drivers ditch their luxury rides for less expensive alternatives.
Many used auto dealers say they're seeing more customers than ever before and vehicles priced under the $20,000 mark are quickly driving off the lot.
“It’s cheaper, less money, I would say I'm a conservative person, I don't want to get myself into debt, especially with the economy not as strong right now, said Stephen Lang, Varsity Chrysler customer.
Some people are simply buying cheaper, more economical cars but others are struggling to off-load vehicles that they bought new and can no longer afford to keep.
“A lot of people around the 35 and under age that have worked up north making the big dollars that bought these 70, 80, 90 thousand dollar trucks are coming in and trying to get into something a lot smaller for gas economy and reducing their payments,” said Dennis Ebbs from AUTOMAXX.
Ebbs is one of the few people in Calgary that is hiring these days and says he has brought on a number of new sales people in recent weeks.
“For the past four or five months we’ve seen a spike in the used car industry,” said Ebbs. “People are coming in trying to reduce their payments, getting into something a lot less expensive.”
Dealers also say buyers are passing up on many of the extras.
“We see guys coming in that want a truck and have their own businesses that usually want leather and sun roofs and all the fancy, dancy stuff, but now they’re getting into just a normal, everyday truck, F-150 or a Ram 1500, just a basic truck at a low price,” said Ebbs.
Used auto dealers say for many buyers good mileage and reliability is now becoming more important than image.
For information on buying a used vehicle, click HERE.
(With files from Chris Epp)
