Jonathan Smoke makes 2018 prediction
Economists expect sales of used cars to rise in ’18
Monday November 20, 2017
Article Highlights
- U.S. new-vehicle sales will decline in 2018, but used-vehicle volume will grow 2 to 5 percent next year, economists said last week.
- The used-vehicle industry can expect a strong general economic climate but will face continued challenges of shrinking margins, lower vehicle prices, disruptive technologies and political and regulatory uncertainty.
- Jonathan Smoke, Cox Automotive's chief economist, estimated that 39 million used vehicles will be sold in 2017, including private sales from one individual to another. He predicted a 2 percent increase in 2018.
U.S. new-vehicle sales will decline in 2018, but used-vehicle volume will grow 2 to 5 percent next year, economists said last week.
The added used volume should help franchised dealers offset lower new-vehicle sales, but independent dealers face greater competition for inventory, a panel of economists told the combined Used Car Week conference and National Auto Auction Association convention here.
The used-vehicle industry can expect a strong general economic climate but will face continued challenges of shrinking margins, lower vehicle prices, disruptive technologies and political and regulatory uncertainty, the panelists agreed.