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.
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]