After five consecutive years of sales growth, the U.S. auto industry is on track for a record run. Although new cars grab most of the headlines, it's actually the pre-owned market that is responsible for more than twice as many sales-40 million used cars sold versus 17 million new ones. This long-term trend is unlikely to change anytime soon. In fact, there are several reasons why it may grow. Let us take a moment to discuss them. New Car Prices Are Rising After a banner year for untouched autos, their prices have risen. According to the automotive data site TruCars, the cost of the average new car jumped by 1.9 percent last year. For the average buyer, that increase means they'd pay an extra six hundred dollars at the dealership. How about used car costs? While it is true that their prices are also rising, there are still bargains to be found. With increased access to online sellers, it is often a lot easier to find a great deal on a pre-owned auto anywhere in the nation. By comparison, price variance for new autos tends to be a lot smaller. Larger Supply As basic economics assures us, the price of any product is based on the forces of supply and demand. Because used cars are in high demand at present, their prices could only remain steady if the supply of available vehicles rises, and that is exactly what's happening. Why? Fueled by a rising supply of off-lease vehicles, industry insiders expect prices of pre-owned vehicles to plunge by up to 4.5 percent this year. In other words, lots of people whose leases are up are turning in their borrowed autos, resulting in a much larger supply of secondhand vehicles. The inevitable consequence is considerably lower prices. Changing Demographics According to industry projections, Generation Y is expected to account for 40 percent of all auto purchases over the next five years. Because these drivers are far more likely to be apartment dwellers that live in urban areas than their parents were, their need for a brand-new vehicle is significantly lower. Most are perfectly happy investing a small amount of money in an automobile they will use sparingly while they reside in the city. Aging Fleet The vehicles of today are designed to last a lot longer than those of yesterday. Most have no problem breaking the 100,000-mile mark. It is no surprise then that the used cars on America's roads are older than ever. According to a recent report, the average age of a U.S. vehicle is 11.4 years. Although that kind of longevity is impressive, it means that millions of Americans will inevitably need a new ride in the near future. And since most shoppers buy pre-owned autos, sales should rise. When considering used cars, Newburgh, NY residents visit Sunshine Ford Lincoln. Learn more about these products at http://sunshineford.net/Poughkeepsie-Kingston-Goshen/For-Sale/Used/.
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