- Fed policy and a highly competitive lending environment will continue to see credit standards loosen and availability grow.
- The recovery in housing and construction will pick up steam, benefitting both the economy and employment. This will help stoke demand for traditional used-car and -truck shoppers.
- Employment will continue to improve, especially toward the latter half of the year once the outcomes of the government sequester and debt ceiling extension are better known.
- With a predicted increase of 8%, the supply of units up to three years in age will grow for the first time since 2006, but even with the increase, volume will still be 25% below where it was in the three years leading up to 2009.
- While it's expected that the recovery in new-vehicle sales will siphon off a portion of used-vehicle demand, there remains pent-up demand for those consumers who traditionally purchase only used vehicles. "As job growth continues to progressively improve, used-vehicle intenders will gradually replace their current vehicles with newer, pre-owned ones, thereby helping to compensate for the loss of new-vehicle substitute demand," Banks said.
NADA: 5 Factors That Will Keep Used Vehicle Trade-in Values High In 2013
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