NADA: 2014 could see best used-car growth since 2005
A stronger economy and improved older product should help bring continued growth in the used-car market in the next 18 months, says NADA. Many economists believe next year will be the strongest year for used-car growth since 2005.
With the improving economy and attractive new-vehicle incentives, some consumers could decide to buy new vehicles instead of late-model used. But to offset that trend, some pre-owned buyers could decide to replace their car with a newer pre-owned model.
Although growth in late-model supply is expected to put downward pressure on prices, the price decline will be modest because later-model volume will remain well below pre-recession levels. And with a strengthening economy and product improvements making price-sensitive consumers less apprehensive about buying older units, older used-vehicle prices should remain high for at least two more years.Download Bulletin PDF