But that number likely to double by decade’s end! Dec.19, 2014
More than 54 million new and used vehicles will be purchase in 2014 accounting fro $1.1 trillion.
When the books are closed on 2014, combined new and used auto sales are likely to reach a record $1.1 trillion in the U.S. And that figure could double by decade’s end, according to various industry studies.
On top of that, automakers have been able to boost prices at a time of strong demand during a period of sustained economic expansion and falling gas prices. So, forecast TrueCar, total revenues for the year will be up about 8.3%.
“The overall buying power in the auto market sometimes isn’t fully appreciated,” said TrueCar President John Krafcik. “To put this in perspective, new vehicle revenue alone will surpass the value of new single family homes in the U.S. nearly three times. It’s a remarkable year for the industry as both sides of the market are seeing notable growth and commanding strong pricing power.”
New car sales have exceeded industry forecasts for most of 2014, and analysts are anticipating even better numbers in 2015, with some now suggesting the market could match or exceed previous peaks in the 17 million range.
How much more prices will rise in the process remains to be seen. But according to TrueCar, the price of the average new vehicle jumped 1.9% during 2014, to $31,831. Used vehicle prices, meanwhile, have increased 5.1%, to an average $16,335.
Previously owned vehicles saw even sharper gains in recent years, in part due to a shortage of “nearly new” off-lease vehicles coming out of the industry’s worst downturn in decades. TrueCar said it expects the supply to be more normal in 2015 – with an extra 10% more vehicles available that are five years old or younger.
“This is the last year we expect used supply to be impacted by the recession’s pullback in new vehicle buying,” said Larry Dominique, head of ALG, the former Automotive Leasing Guide, which is one of the industry’s arbiters of used vehicle pricing.
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