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.
SEE ALSO: Used Car Pre-Purchase Inspection: 10 Things to Check
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]
Jason Siu began his career in automotive journalism in 2003 with Modified Magazine, a property previously held by VerticalScope. As the West Coast Editor, he played a pivotal role while also extending his expertise to Modified Luxury & Exotics and Modified Mustangs. Beyond his editorial work, Jason authored two notable Cartech books. His tenure at AutoGuide.com saw him immersed in the daily news cycle, yet his passion for hands-on evaluation led him to focus on testing and product reviews, offering well-rounded recommendations to AutoGuide readers. Currently, as the Content Director for VerticalScope, Jason spearheads the content strategy for an array of online publications, a role that has him at the helm of ensuring quality and consistency across the board.
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