‘Used’ cars may plump up sales

The auto industry had its hottest year in 2015 after moving 17.5 million vehicles for a total of more than $500 billion in sales. This year looks like it could be another repeat. But amid all the growth, there are some trouble spots. Case in point: A new report in The New York Times that details how certain manufacturers might be lifting sales.

Some automakers are encouraging dealers to buy cars from their own stock and then sell them as “used” even though they’re basically new.

Now, let’s be clear: This is great for car buyers if you can get your hands on one of these. What’s slightly troubling is if these numbers are contributing to the red-hot auto market. One memo obtained by the Times found small dealerships might be able to boost their quarterly sales by a third using this method.

Who’s doing this? Three manufacturers in particular: BMW, Kia and Nissan.

For example, Kia in February allowed 755 of its dealers to buy up to nine vehicles from their own inventory and create a bill of sale for each — even though there was no customer. Those cars were then held for 15 days as testdrive models, after which they could be sold as used with discounts of up to $6,000.

You may be able to steal a deal from these automakers if you can find these cars.

Meanwhile, with gas prices still low, people are more interested in larger vehicles than they are in smaller cars. Toyota is a case study of what’s going on. USA Today reports sales of the Corolla are down more than 7 percent, while Camry sales are down 4 percent. But the RAV4 is up nearly 14 percent and the Highlander SUV is up 9 percent.

Sedans are going unloved and represent a great buying opportunity!

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