Higher mileage trade-ins are becoming the new normal for dealers. Black Book estimates an additional 900,000 trade-in units will hit the market this year, with the majority of them in the 2000-2005 model year vehicles. This is not an easy situation, as vehicles older than 2005 are difficult to finance.
Black estimates that most trade-ins these days are averaging between 125,000 to 150,000 odometer miles. Some F&I experts are seeing a rise in vehicles in the 200,000 mile range. Black Book thinks Buy Here Pay Here dealers will gain the most benefit from this trend, as demand remains strong and consumer credit restrictions has pushed more consumers into seeking these deals. How long will all of this last? Black Book thinks that the aged inventory will impact dealers through 2014, with trade-ins then falling back down in age and mileage.
