Used cars should get cheaper in 2014 after five years of consistently rising prices, in part because more vehicles are coming off lease this year, NADA economists say.
Analysts at NADA Used Car Guide say this is not a sign of a bursting bubble. But a report from a used-vehicle auction company warns that the industry must hone its remarketing processes because the number of off-lease vehicles will continue to climb sharply.
The average price of a used car rose 18 percent from 2007 to 2013 as cash-strapped consumers bought used cars rather than new ones, says NADA Used Car Guide. Prices also were supported by the federal Cash for Clunkers program, which slashed the supply of old cars.
Used-car prices are now roughly 10 percent higher than the average price of the past couple of decades, NADA analysts said.