News Coverage
6 Used-Vehicle Trends to Watch in 2019
Monday January 28, 2019
Article Highlights
- "The fundamentals remain solid; used-vehicle demand is at a peak," Jonathan Smoke, chief economist at Cox Automotive, said in a conference call for the Manheim Used Vehicle Value Index. "Wholesale supply is now post-peak and starting a gradual decline."
- Tax reform generally helped consumers keep more of their income, and that helped spur both new and used demand last year. The effect on 2019, however, is in question: Smoke has warned that insufficient withholdings may leave many filers unpleasantly surprised by lower returns. "At this point this is a major concern for the first quarter and could have economic implications for the rest of the year," Smoke said.
- Still, Smoke noted, "the used market is the answer for the affordability challenges in the new market."
Automotive News, Jan. 28, 2019 — In many ways, on both the new- and used-vehicle side of the automotive market, 2019 is starting much like 2018 did. The economy, for the most part, is humming along, and sales of cars and trucks have been solid. But like last year, analysts warn that what has gone up since the Great Recession must surely come down — at least a little.
The tepid outlook reflects macroeconomic concerns, such as the government shutdown, rising interest rates and the threat of tariffs — in addition to record-high vehicle prices.