Car sales are a good indicator of the current economic climate, and a recent report by Kelley Blue Book (KBB) indicates that conditions are still looking positive. The industry experts at KBB predict that car sales will see a month-over-month improvement of 14.3 percent in August. The projected sales numbers are 18.7 percent ahead of the same month last year, but the report noted a slight decline in daily sales between July and August, due to a drop that typically occurs in the laters months of the year.

There is an especially noticeable surge in new car sales, and brands like Toyota and Honda are expected to have exceptionally strong numbers. This is due largely to the fact that the Japanese automakers are recovering from the earthquakes that stunted manufacturing and led to inventory shortages last year. The inventory shortages also caused used car prices to rise, which has driven consumers toward buying new cars, a trend that is still making an impact.

"Although economic jitters remain top-of-mind for many, those consumers seeking replacement vehicles continue to opt for new cars with used-car values," said Alec Gutierrez, senior market analyst of automotive insights for KBB. "In fact, a recent survey of KBB.com shoppers conducted by Kelley Blue Book Market INtelligence found that 53 percent of respondents indicated they were considering a new vehicle rather than used due to elevated used-car values."

However, the decision to purchase a used car versus buying a new vehicle should be carefully thought out, as there are distinct advantages to buying a used model. Previously-owned models depreciate less quickly than new cars, so when it comes time to trade in your current model, you'll likely get a higher return on your investment if you bought a used vehicle. Plus, there are still great deals to be had when it comes to buying used cars. A one-year-old model may be comparably priced to a new car, but shoppers can find a model with a few years under its belt that is affordable and reliable at NJ Auto Auction.