Used Car Prices Expected to Fall in 2014: NADA

Used Car Prices Expected to Fall in 2014: NADA

After five years of consistently rising prices, used cars should get cheaper this year according to economists from the National Automotive Dealers Association.

NADA analysts insisted that it’s not a sign of a bursting bubble, however, but that used-car prices will simply get closer to their historical average. The average price of a used car rose by 18 percent between 2007 to 2013 and currently, used car prices are roughly 10 percent higher than the average price from the past couple decades.

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According to Jonathan Banks, executive automotive analyst for NADA’s used car guide, the elevated price of used cars is a “new normal,” and the market remains in a solid position. NADA also predicted that 16.4-million new cars and light trucks will be sold or leased in the U.S. this year, up 6 percent. The used-car market should see roughly 42-million units sold worldwide.

[Source: Automotive News]