Lower Used Car Prices Expected in 2014
Car buyers looking for a used car might want to wait until later in 2014. According to National Automobile Dealers Association economists, used cars should be getting a bit cheaper in 2014 after five years of rising prices.
Because of the recent economic recession, many car buyers were looking to buy used rather than new, causing the average price of used cars to raise 18 percent from 2007 to 2013. With the recession on a down swing, some analysts predict what they like to call a “correction”—a severe lowering of used car prices, bringing the rates closer to the historical average. This would serve to keep used cars as a viable option for buyers as new vehicles become a more attractive (and manageable) choice.
There is much debate regarding the possibility of this correction coming to head. Some analysts, such as Jonathan Banks, executive automotive analyst for NADA’s used car guide, believe that the price drop won’t be as severe as predicted, with the price of used cars aged eight and below falling only 0.5-1 percent.
NADA predicted that 16.4 million new vehicles will be sold or leased this year, which would be six percent better than 2013’s sales figures. It is also predicted that around 42 million used cars will be sold across America, which would also be an improvement over last year’s numbers.
So we want to hear from those of you who are planning on buying a vehicle in 2014: would significantly or even slightly lower used car prices sway you toward going pre-owned? Let us know your thoughts in the comments below!
- Tim ShultsContributor
Tim Shults is the President of the Shults Auto Group. In his spare time he likes to play golf and spend time with his four daughters. Shults Auto Group is the largest auto group in the Southern tier. With over 400 employees, Shults Auto Group has 11 different dealerships carrying 15 different makes and 2 strictly used car stores, Shults Toyota, Ed Shults Chevrolet Cadillac, Shults Chevrolet of Westfield, Edmond Chevrolet Buick GMC, Ed Shults Ford Lincoln of Jamestown, Kia of Jamestown, Ed Shults Subaru of Warren, Shults Hyundai, Ed Shults Chrysler Dodge Jeep of Warren, Shults Resale, Shults Resale Olean, and Shults Nissan.