The auto industry is gradually recovering from its disappointing performance over the last few years, and sales of new and used cars are expected to climb in 2011.
Economists claim that the slow pace of job creation and lingering unemployment will continue to make many consumers shy away from purchasing brand-new models, and will therefore keep used car demand relatively high throughout the year, the Philadelphia Enquirer reports. New car demand is expected to grow as well, as consumer confidence rises and many decide to make the new car purchase that they've been delaying over the past few years. The expansion of credit is also expected to contribute to sales growth in both used and new car markets.
"There has been very gradual improvement in the labor market, very gradual improvement in consumer confidence, there’s been slightly better access to credit," said economist and auto sales expert Sophia Koropeckyj.
Despite the growth in demand, prices are not expected to rise much throughout the year for either new or used cars, according to the news source. Consumers with bad credit history who are in the market for a new vehicle may be in a lucky position – the increases in demand are prompting manufacturers to introduce a wide variety of great bad credit cars to their model lines, and the stable prices should make many of them highly affordable.