BusinessReport.com

Alan Moise estimates sales of used cars have increased 35% over the same time last year at Acura of Baton Rouge.

“There are savings there,” says Moise, the Airline Highway dealership’s sales manager, “but then again, there are savings on new cars, too. I just don’t think people are doing side-by-side comparisons at the dealership. There are bargains on new cars. It’s just, ‘Let’s go get a used car because we’re saving money.’”

According to Edmunds.com, a car-buying Web site, Moise is correct.

Buyers should not assume every used car is the best buy in a current market in which sales of new cars are at a 27-year low. Not only have automakers decreased prices of some models, they are adding rebates and incentives.

Edmunds.com CEO Jeremy Anwyl says deals on some new vehicles are so generous they’re less expensive than a 1-year-old used version of the same model. At the same time, the demand for used cars is making some vehicles more difficult to find—driving up prices in the process.

These factors are creating what Anwyl calls “an unusual economic event.” In other words, a new car might be less expensive to buy than a used one in today’s unpredictable market.

For example, the average cost of a used 2008 Honda Accord EX sedan was $21,544, according to Edmunds.com. A new 2009 model costs $80 less.

Moise says used cars remain a good value, but he encourages the customer to compare.

“There seems to be a trend to gravitate toward pre-owned cars that are a year, a year-and-a-half old with 12,000 or 15,000 miles without investigating a new car,” he says. “What we’re saying is to do side-by-side comparisons with a new model at the dealership with your sales person.”

Even though Joe Johnson, the general manager at Richards Honda on Florida Boulevard, considers leasing a good option, it hasn’t been popular in south Louisiana for nearly 10 years. Consumers want to buy, even though they’re more focused than ever on how much they’re spending on their vehicle, warranties for that vehicle and dealerships that are closing.

“I don’t think people see as much value in buying a new vehicle,” Johnson says. “I also think, in general, it’s monthly notes people are worried about. They’re worried about their budget.”

Johnson says first-quarter new car sales are off 26% from the same time last year—but at least people are buying. Used car sales are down 17.8% for the same period.

“We’re seeing people being a little more tentative on their purchasing decisions,” he says. “And they’re being a little more educated or concerned about the value they’re getting for their dollar.”

Sales last year were substantially boosted by people trading in their SUVs and trucks for more fuel-efficient vehicles. But Johnson says sales decreased dramatically after Hurricane Gustav left the area in a recovery mode. More recently, however, he’s seen an increase in sales as consumer confidence improves.

“This year it’s taken a dip, but we’re still selling our fair share, so we feel good overall about business in today’s economy,” he says. “We’re probably seeing Honda getting a big piece of the business, but of a smaller pie.”