According to analysts at Edmunds.com, car sales are expected to top the 16 million mark during 2014, a number not seen within the industry since 2007. This number will top 2013’s predicted estimate of 15.5 million by six percent and beat sales of 16.5 million seen in 2006.
Much of this prediction has to do with the average age of vehicles on the road in the United States. As of now, the average age of a vehicle on American roads is about 11.4 years old. This number is up from 2012’s average of 11 years and puts the normal driver at about 170,000 miles when driving about 15,000 miles per year. This means drivers will soon be forced into a new or slightly lower mileage vehicle. Lacey Plache, chief economist for Edmunds.com, commented that, “We’re already getting past a pretty substantial mileage. Cars are going to start breaking down. Cars are getting older and older, and that’s going to force people back to the market and get new cars.” Also contributing to the rise in auto sales will be the 300,000 lease customers whose contracts will end during 2014.
Consumers are also liking the historically low interest rates of late and the increasing availability of credit, especially to those with a not-so-perfect score. Plache continued with, “There’s no reason to believe the current economic climate is going to suddenly cause a longer term slowdown to auto sales. Credit is still widely available, interest rates are still low, and aside from the furloughed employees, the job situation hasn’t dramatically deteriorated. … We’re in a bit of a short-term crisis.”
Are you one of the many Americans running around in an eleven year old vehicle? If so, take the worry out of driving by visiting All-Star Chrysler Dodge Jeep Ram. The All-Star team can guarantee your credit approval and get you the much needed dealer auto loan St Louis financing you need! Visit All-Star today and be on the road in a new vehicle tomorrow!