Webb's optimism is driven by the fact used vehicle prices are expected to edge slightly higher this year while demand for pre-owned vehicles is robust.
Franchised dealers are selling used vehicles for an average of $14,000-$15,000, according to Webb.
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Strongest sales since 2005
With the U.S. economy improving while dealers and banks are writing auto loans to a wider array of buyers, used vehicle sales from franchised dealers will reach their highest level since 2005.
"Last year, franchised dealers sold 15.6 million used vehicles," said Webb. "I think it's reasonable to expect 16 million in sales this year."
Not only is credit more available, the rates on used vehicle loans is expected to stay at a reasonable level.
Webb says the average used vehicle loan interest rate is between 7-8 percent with subprime borrowers paying between 12-19 percent and certified pre-owned vehicle buyers seeing the best rates between 4-5 percent.
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Certified pre-owned demand growing
Last year, auto dealers sold 2.1 Certified Pre-Owned vehicles, a testament to the popularity of programs designed to assure customers that the used cars and trucks they are buying have been given a thorough check-up and are backed by dealers.
This year, certified pre-owned vehicle sales are projected to reach 4 million according to Manheim.