Feb. 3—Despite relatively encouraging national numbers in 2023, local used car dealers are still riding the roller coaster when it comes to sales.

The used car market has seen its share of ups and downs in the past year. According to industry tracker markline.com, used car sales were up just over 12% in 2023 compared with 2022. However, a rough December 2023 saw a freefall in used car prices, which was good for buyers but difficult for dealers.

Charles Spearman, general manager at Hilltop Motors in St. Joseph, said that positive national numbers can be deceiving.

"The market has been very uncontrollable," Spearman said. "The market was supposed to be up 12%, and even though that's the national claim, it didn't feel like it to most dealers."

The biggest positive coming into 2024 is the increase in available inventory. However, according to Spearman, even though availability is leveling out a bit regarding volume, it can be difficult for smaller dealerships to find quality used cars.

"Not every car you buy at auction is high quality or ready to be sold," Spearman said.

Although bigger lots with a new car division can have more used vehicles to choose from thanks to the possibility of more trade-ins, the ebb and flow of the car market tends to affect smaller and bigger dealers about the same, just on a different scale.

"It's feast or famine," Spearman said. "When the feast is there, everybody's eating. But when it slows down, just about everyone is affected."

Rolling Hills Auto Group is also seeing some positive trends after a long and difficult few years, said General Sales Manager Mike Wachtel. Now that end-of-the-year new car incentives have gone away, the demand for used cars is going up again. According to Wachtel, even though prices are a bit higher on average for used cars than in previous years, the biggest challenge for buyers is high-interest rates.

"It's difficult to tell customers with good credit that they're not going to get the payment they expect because of higher interest rates," Wachtel said.

He added that in this economic climate, it has become more common for dealerships to make special deals with banks and credit unions to get more competitive rates for their customers. So buyers should at least allow dealers to match or beat the interest rate their bank has quoted them. As for the immediate future, Wachtel is hopeful.

"I'm thinking the used car market is going to be relatively good in 2024," Wachtel said. "Once interest rates start coming down, I think the used car market will get even better, and I think the new car market will also come back into full swing."

Until then, both car dealers advise potential buyers to utilize the online tools available to find the kind of used car they want and then do their best to secure an affordable interest rate.

Charles Christian anchors the evening news for News-Press NOW and also serves as an ordained minister at United Methodist Churches in Union Star and Helena, Missouri. Charles can be reached at charles.christian@newspressnow.com. Follow him on twitter: @NPNowChristian.