If consumers hit by a tough economy and scarce credit have stalled out new car sales, they're staying mobile either by hanging onto their current vehicles as long as possible or buying a used car instead.
The shift has helped prices for used vehicles climb in recent months, offering at least some opportunity for businesses who've lost new vehicle sales. But consumers' first choice seems to be to keep the cars they've already got going.
A new study by DriverSide.com and Kelton Research found four out of every five car owners in the United States planning to keep their current car longer because of the bad economy. The survey showed 82 percent of vehicle owners do not plan to get another car in the near future.
Moreover, almost nine out of 10 households from two important groups -- those who have an income of less than $40,000 and families with children -- indicated they will keep their vehicle longer than originally planned.
Often in the past, people traded a car or truck after three years because that's when leases often ended and warranties covering repair costs expired.
"The two- to three-year ownership cycle is dead," said Trevor Traina, founder and chairman of DriverSide, a Web site dedicated to helping people with all aspects of vehicle ownership.
"In a downturn economy, consumers focus automobile-related efforts on maintaining vehicles, minimizing operational expenses and preserving the vehicle's overall value," said Thilo Koslowski, vice president and automotive practice leader at Gartner Inc., a San Francisco analytic firm.
Meanwhile, sales of used cars are strong, even though such vehicles are costing a bit more. "Prices for used cars have actually gone up, and that's a positive sign," said David Cole, director of the Center for Automotive Research in Ann Arbor, Mich.
Officials for Kelley Blue Book, a respected source of information for those who buy and sell used cars, said values for trucks and SUVs alone have gone up 4.2 percent and 4.9 percent respectively during the last month.
That's, in part, because the value of those kinds of lower-gas-mileage vehicles had fallen significantly last year, according to Robyn Eckard, director of public relations for Kelley Blue Book. "It's not so much that values have increased dramatically, it's more because the market is now returning to normal levels."
Overall, domestic full-size car prices gained 1.1 percent and compact car prices gained 0.4 percent with mid-sized car prices dropping 1.4 percent during January. In addition, subcompacts saw small gains on top of their already high values.
Rob Cochran, who operates dealerships in Murrysville and Robinson, reported the used car market has firmed up locally as well. "Pricing at the used car auctions has gotten stronger, indicating that used car sales have strengthened both locally and nationally, and we hope that trend continues," he said.
The used car market has been volatile over the past six months, and Mr. Cochran expects some volatility going forward, given economic conditions.
Still he added, "There's a lot of value with used cars, and one of our big focal points now is to do what we can to expand our used car operations."
His company now has two or three people in other markets looking for opportunities to pick up cars and trucks. "We can bring back 10 or 20 examples of cars that are selling well, rather than just working with what's being traded in locally," Mr. Cochran said.
Reflecting the national trend, used small SUVs and crossovers are hot at Cochran No. 1.
"We've had great success with pre-owned Saturn Vues [a small SUV] and Saturn Outlooks [a crossover]. But I also think it's a function of being able to meet a price point for whatever model you are buying, whether it's a luxury model or a mid-sized SUV or whatever it is," he said.
Car dealers have become creative in trying to make sure credit is available to qualified buyers, said Ms. Eckard.
"Dealers have reached out to more banks, credit unions and different financial institutions, so the consumer now has various ways to qualify," she said.
Those who do get loans should expect a higher interest rate -- between 4 and 8 percent. Ms. Eckard said.
Right now, there's no particular brands of cars that are any hotter than others. In a slow economy, it's the deal, not the brand, that rules the day.