2014 may prove to be a good year for the used automobiles market. According to industry analysts, improved ease in the availability of credit, falling interest rates and general signs of economic recovery are proving to be a boon for the used car market in the year ahead.
These are the predictions of Manheim Consulting, a firm that boasts specialization in tracking and studying the market for used cars. According to the firm, the latest data available from auto dealers indicates that there is a strong demand for pre-owned vehicles in the market currently.
According to Chief Economist of Manheim Consulting Tom Webb, the market looks positive from the standpoint of auto dealers. According to industry forecasts, the prices of used vehicles are likely to inch upwards this year given that the demand is predicted to increase.
According to Webb, franchised dealers are currently reported to be selling pre-owned vehicles in the range of USD 14,000 to USD 15,000. This is good news considering that the used automobiles market seems to be standing strongest in terms of sales since the year 2005.
This propelled by the fact that the U.S. economy is showing signs of buoyancy and banks are also offering loans to a wider segment of auto buyers.
According to Webb, in 2013, nearly 15.6 million automobile units were sold by franchised dealers. And, this year, this figure is likely to go up to 16 million, if not more.
The easier available of bank credit, and a reasonable rate of used vehicles are two main factors that will push forward sales in the used automobiles market. However, the greatest demand within this category is that for certified pre-owned vehicles rather than uncertified ones.