CNW believes more consumers, including Millennials, are ready to ditch their post-recession funk, which the firm believes bodes well for 2014 vehicle sales.
The industry sold 3.284 million used cars in December and 42 million units for the year. Driving those totals were increases in below-prime auto loan approvals, as finance sources continued to relax their guidelines.
CNW says three million leases are set to expire in 2014, fueling the firm’s prediction of a solid year for the certified pre-owned market.
A series of upbeat metrics has CNW putting December new-vehicle sales in the 1.5 million-unit range, a 10% increase vs. the year-ago period.
Franchised dealers are set to sell more than 1.24 million used vehicles this month, a gain of nearly 9% vs. a year ago, according to data from CNW Research.
November returned to normal after the partial government shutdown in October. CNW Research believes the purchase delays the shutdown caused could prime the market for a solid 2014.
November returned to normal after the partial government shutdown in October. CNW Research believes the purchase delays the shutdown caused could prime the market for a solid 2014.
The reopening of government in mid-October helped used-vehicle sales realize a 3.63 percent increase from a year ago, CNW Research calling the increase “somewhat weaker” than expected.
CNW Research says the government shutdown was like ‘putting a dam on a river.’ But when will that pent-up demand be released?
CNW Research issued a warning this week, reporting that lease contracts have been overestimating residual values by roughly 14 percent in 2013. The firm expects automakers to lose between $5 billion and $8 billion within three years.
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