Revenue from new, used auto sales topped $1.1 trillion in 2014

Revenue from new, used auto sales topped $1.1 trillion in 2014

Total revenue from consumer purchases of new and used cars and trucks is looking like it topped $1.1 trillion for 2014, thanks in part to higher transaction prices, reports TrueCar.

Consistent, strong demand for vehicles was cited as lifting total vehicle revenue 8.3 percent over about $1 trillion in 2013. The increase comes amid sustained economic expansion, an improving job market, falling gas prices and a consumer shift to higher revenue segments, including pickups and luxury vehicles. Total market sales are estimated at 54 million units, an increase of 8 percent, including 16.5 million new and 37 million used vehicles.

–To put this in perspective, new vehicle revenue alone will surpass the value of new single family home sales in the U.S. nearly three times,” said John Krafcik, president of TrueCar. –Itês a remarkable year for the industry as both sides of the market are seeing notable growth and commanding strong pricing power.”

The average new vehicle sold for $31,831 last year, up 1.9 percent over 2013, and used vehicle transaction prices rose 5.1 percent to an average of $16,335, said TrueCar.

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