With the 2018 tax cuts putting more money in the pockets of Americans, industry insiders at Cox Automotive forecast an increase in used vehicle sales. This year could be the perfect time to purchase a new pre-owned vehicle.
A Wider Selection of Used Cars
Aside from the tax cuts, one of the biggest factors expected to increase used vehicle sales is more variety in the market, according to Cox Automotive. We expect 2018 to bring a greater variety of vehicle types to the used automobile market, as many popular crossovers, SUVs, and pickups will be coming off lease and onto dealer lots. This is excellent news for families looking to purchase a larger vehicle in the popular SUV or crossover segment.
“Most of the growth is in pickups and SUVs, which are more in demand, so grounding dealers will retain more off-lease vehicles themselves,” said Cox Automotive Chief Economist Jonathan Smoke.
One of the more popular full-sized pickups, the Chevy Silverado, is expected to almost double 2017’s sales with more than 70,000 of these pickups coming off lease.
How will buyers be able to afford these larger, more expensive vehicles? This is where the new income tax cuts come in.
"We believe about 85 percent of U.S. households will get a boost in take-home pay," Smoke said in a conference call with investment analysts and reporters.
With consumers getting more money in their pockets – and new light vehicle sales predicted to decline two to four percent – Cox anticipates that the average used vehicle transaction amount will increase more than a full percentage point compared to 2017’s 39 million. Consumers should look to use their tax refund as a down payment for their next vehicle if they expect to get a decent amount of money back.
Whether you’re a consumer with a large family, or you’ve just always wanted a larger vehicle, you may have a better chance than ever to get the used vehicle you want. If buying a reliable used vehicle is on your list of things to do this year but you worry about bad credit getting in the way, let Drivers Lane help.
We work with a nationwide network of special finance dealers that have lending resources to work with people who find themselves in challenging credit situations. Take the first step toward finding a dealer to meet your needs. Just fill out our simple auto loan request form to get started.