Lower Used <b>Car Prices</b> Expected in 2014 | Dealer Communications |
- Lower Used <b>Car Prices</b> Expected in 2014 | Dealer Communications
- Why Lower Used-<b>Car Prices</b> Hurt The New-Car Recovery A Bit <b>...</b>
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| Lower Used <b>Car Prices</b> Expected in 2014 | Dealer Communications Posted: 07 Feb 2014 07:01 AM PST
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. |
| Why Lower Used-<b>Car Prices</b> Hurt The New-Car Recovery A Bit <b>...</b> Posted: 06 Feb 2014 07:24 AM PST
Used-car prices are declining – not alarmingly; they're heading back towards normal, really – but that's letting some air out of the recovery in new-car sales and car company profits. That's important for the auto manufacturers because unusually high used-car prices have been a tail wind in several ways. High used-car prices mean the car companies and their captive finance companies lose less money – they may actually even make a profit – on cars and trucks coming back from leases. |
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Lower used car prices expected in 2014, according to
Why lower used-car prices hurt the new-car recovery a bit, according to
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