Pub. 12 2013-2014 Issue 4

N e w J e r s e y C o a l i t i o n O f A u t o m o t i v e R e t a i l e r s 9 new jersey auto retailer w w w . n j c a r . o r g t o de fend i n - de a le r sh ip f i nanc i ng and educate legislators and the public regarding how enormously successful it has been at increasing access to auto credit, and reducing the cost for millions of Americans. NADA also continues to point out that consumers overwhelmingly choose dealer-assisted financing because it’s convenient and affordable. NADA: Rising Home Values, Residential Const ruct ion and Employment to Boost Auto Sales Gr ow i ng home va l u e s , i nc r e a s ed residential housing construction and rising employment are key factors that will drive the U.S. economy this year according to NADA Chief Economist Steven Szakaly. These factors are critical to maintaining the pace of auto sales growth, which has been an integral part of the nation’s economic recovery. NADA predicts 16.4 million new cars and light trucks will be purchased or leased in the U.S. this year, a 5.8 percent increase over 2013. NADAUsedCarGuide: Used Vehicle Prices to Slip in 2014 A sharp rise in the supply of late-model used cars and light trucks is expected to end a five-year run of price growth, according to the NADA Used Car Guide. Late-model used vehicle supply will be more plentiful, in large part due to an 18 percent surge in off-lease volume. The supply of units six to eight years in age, though, will continue to fall as a byproduct of the new-vehicle sales decline from 2006 to 2009. These trends may result in late-model used-vehicle prices dropping more substantially than older vehicles. In the near-term, however, NADA’s used- vehicle price index remained unchanged at 124.6, tied with August 2013 and De- cember 2013 as the third-highest figure ever recorded. The index measures the change in used-vehicle prices up to eight- years-old. According to staff at NADA Used Car Guide, the harsh weather that impacted a large portion of the country in January and February had little impact on used-vehicle prices. Compact utility, large SUV and mid-size van prices dropping slightly, while compact car, large pickup and mid-size utility prices inched up; and mid-size car prices were f lat. DIRECTOR’S MESSAGE  continued from page 7