That’s exactly what many new cars dealers in Lehigh Valley are doing. “It hasn’t been profitable for new car departments for years,” said the owner of one dealership in the area. “I love being a new car dealer but economically speaking, it just makes sense to sell used cars now.” He went on to say that switching to an all used car inventory is financially better because they can sell more used cars at cheaper prices since they no longer have the expense of carrying new cars.

When selling new cars, some medium to larger dealerships keep at least $3 million worth of new cars on their lots. The company has to pay monthly interest on those cars, which is about $30,000 on $3 million. And since banks and lenders have become stricter on giving out new car loans, people just aren’t buying them like they used to and dealerships get stuck with a large interest payment that they cannot afford.

Besides that, with better quality and better prices, used cars are just a smarter option in today’s economic times.

In knowing the numbers, you have an idea of the value of the car you are negotiating on. The dealer will work hard to justify his or her price, without a doubt, but you can negotiate your way past the salesperson by remaining firm on a price you think is fair. By setting this price or setting your own limits before you walk on to the lot, you are already a step ahead.

If you have been shopping around in your area, you should also have a good account of what other vehicles are selling for and how other cars are moving. Use this information to help move the dealer closer towards the price you want to pay for your used car. Keep calm and rely on what you know.