More than 100,000 Car Shoppers Waiting to Buy, According to Edmunds.com
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More than 100,000 Car Shoppers Waiting to Buy, According to Edmunds.com
Average Trade-In Mileage Rising in Correlation with Unemployment
SANTA MONICA, Calif. — July 21, 2009 — Edmunds.com, the premier online resource for automotive information, has determined that in the past few weeks approximately 100,000 car shoppers have been preparing to buy a car, but haven't yet closed the deal.
"There has been a recent surge of purchase intent that has not translated into sales," Edmunds.com Senior Analyst David Tompkins, PhD told AutoObserver.com. "Given that these 100,000 shoppers represent about 10 percent of monthly sales, automakers and dealers should find a way to capitalize on the opportunity and entice these folks to actually buy."
Consumers are holding onto their vehicles longer than in previous years. Edmunds.com analysts have calculated that the average mileage on trade-in vehicles is up 8% as compared to a year ago, and up 15% since January 2008. (The current average trade-in mileage is 65,883, while one year ago it was 61,038 and in January 2008 it was 57,079.)
"There is a strong correlation with the weakened economy," notes Dr. Tompkins. "The average trade-in mileage has increased at a pace similar to national unemployment rates."
Based on early data, Edmunds.com predicts that July sales will only be slightly higher than June's, unless the much-anticipated "Cash for Clunkers" program generates significant activity. The program is expected to officially launch on July 24, but most in-market shoppers are unlikely to qualify. Edmunds.com lays out the specifics of the program in its Cash for Clunkers Resource Center at http://www.edmunds.com/cash-for-clunkers.
About Edmunds
Edmunds.com publishes four Web sites that empower, engage and educate automotive consumers and enthusiasts.
Edmunds.com, the premier online resource for automotive consumer information, launched in 1995 as the first automotive information Web site. Its most popular feature, the Edmunds.com True Market Value® , is relied upon by millions of people seeking current transaction prices for new and used vehicles. Edmunds.com was named "Best Car Research Site" by Forbes ASAP, has been selected by consumers as the "Most Useful Web Site" according to every J.D. Power and Associates New Autoshopper.com Study(SM), was ranked first in the Survey of Car-Shopping Web Sites by The Wall Street Journal and was rated "#1" in Keynote's study of third-party automotive Web sites. Inside Line launched in January 2005 and is the most-read automotive enthusiast Web site. CarSpace launched in February 2006 and is an automotive social networking Web site and home to the oldest and most established automotive community. AutoObserver.com launched in 2007 and provides insightful automotive industry commentary and analysis. Edmunds is headquartered in Santa Monica, California, and maintains a satellite office in suburban Detroit.
