12/4/2013 - 2014 new car sales to flirt with record levels
With 2013 nearly passed, it's right around this time every year that automakers reflect on the previous 12 months to see how they fared sales wise. Most have to be encouraged with how they performed, as several name plates had record sales months.
But as a recently released forecast suggests, 2014 could be a truly banner period for automotive purchases, potentially breaking what occurred prior to the economic meltdown.
According to car-shopping website Edmunds.com, an estimated 16.4 million new car sales are projected to take place next year, driven by pent-up demand among consumers. Should this happen, it would be the highest annual sales performance since the 16.5 million units that were bought in 2006.
Lacey Plache, chief economist for the Santa Monica, Calif.based vehicle information website, noted that many will be in the market to buy because of how old their current car is.
"The average age of all light vehicles on the road climbed to 11.4 years in 2013, and an aging fleet will continue to force buyers back to the market next year," said Plache. "With used car prices still elevated over past norms and used car supply still tight, the new car market will remain attractive to many of these buyers."
Traditionally, auto insurance costs tend to be more affordable for vehicles that are pre-owned. However, depending on the make and model, motorists may be able to purchase a plan for an all-new automobile that's cheaper than it would be to cover a used car.
Edmunds.com also forecasted that more individuals will lease their cars rather than purchase them outright. In fact, an estimated 33% of all sales volume could come from leased contracts.