The trends in the car market are becoming more complicated. I want to give you a look-see into the near future.
A look at car pricing trends now and in 2015
New car sales have been huge for several years now. During the recession, the average age of our vehicle fleet on the road grew to nearly 12 years.
That meant a lot of old wheels on the road. Yet even before any glimmers of economic healing started, people began buying new.
Now we’re to the point when the huge numbers of people who were going to buy new probably have done so. So that’s slowing projected new car sale growth. The pendulum has swung the other way.
Then you add on top of that the trend of young people, particularly those under 25, not wanting to get their license. That too will slow sales.
ARTICLE: Best cars for teen drivers
So now I’m seeing all these predictions in the automotive press that this is the last year of booming new sales. If they’re right, we’ll see softness in the new car market in 2015. While the average new car price is $32,600, we should see that price point start to come down some on new cars.
The other major trend I want to note is that used cars are a real deal again.
There was a 3-year period there where I had to reverse my historical advice to buy used, when buying used was *not* a deal relative to buying new. We had such a severe shortage of nice new cars at that time. But all that is over, and we’ve gone back to historical patterns.
That’s thanks in part to leasing, which was pushed heavily over the last few years, particularly by the luxury automakers. So those 2011s and 2012s reappearing on dealer lots is driving the cost of used cars down. So once again, buying a 2, 3, or 4 year old car is key for your finances.
And remember, if you’re interested in new cars instead, next year will be a better time if the predictions of the auto press are correct.