The sustained economic growth seen throughout the year in the US has also been supported by the fact that combined new and used auto sales are forecasted to reach a record $1.1 trillion by the year’s end.
According to data service providers, Americans are poised to end 2014 with purchases of 54 million new and “previously owned” cars, trucks and crossovers – and the financial figures are expected to double by 2020, according to numerous industry reports. With sales continuing to grow, automakers are happier they managed to also increase prices thanks to the sustained economic expansion and lower gas prices. That translates to total revenues forecasted to increase by around 8.3%. According to analysts, new vehicle revenue alone is expected to trump the value of new single-family homes in the US by a ratio of three to one.
According to TrueCar, during the year the price of the average new vehicle has climbed 1.9%, to $31,831 – but the real gain was from the used vehicle prices, which jumped 5.1%, to an average of $16,335. And industry forecasters are expecting even better new car sales for 2015, with most analysts predicting the market could grow and match (or even exceed) the previous peaks of 17 million plus units, putting the economic recession in the rearview mirror.