4/24/2014

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Business

NADA: New car sales expected to rise 5.8 percent

NADA: New car sales expected to rise 5.8 percent
From Chevy to Toyota, all major car companies are represented at The Portland International Auto Show, which runs Jan. 24th to the 27th - 1/24 - (Kai Hayashi / KATU.com)
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NEW ORLEANS (AP) - Boosted by rising employment, home values and housing construction, Americans will buy 16.4 million new cars and light trucks this year.

That's the prediction from the National Automobile Dealers Association, which is meeting in New Orleans.

Economist Steve Szakaly, says the 5.8 expected increase will mark the sixth year of recovery from the financial crash and automotive bankruptcies.

Jonathan Banks, analyst for the group's Used Car Guide, says those years of new-car buying and leasing will push prices down for recent-model used cars and trucks, averaging 2.5 percent less than last year's prices. He says 5- to 8-year-old vehicles remain scarce because few people bought cars during the recession. Those prices are likely to be flat.

He says used-car prices are likely to be slightly lower than last year's.
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Applications for U.S. unemployment aid jump to 329,000 Applications for U.S. unemployment aid jump to 329,000