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Posts Tagged ‘off-lease vehicles’

Used Car Buyers Get Welcome Relief as Prices Tumble

Prices finally drop, and could keep sliding into 2016.

by on Aug.15, 2014

Used car prices peaked during the Great Recession, largely due to a shortage of "nearly new" vehicles.

After watching prices surge to record levels in the wake of the Great Recession, U.S. used car buyers are finally catching a break, with costs tumbling sharply on most models and likely to continue to slide through 2016, according to those who track pricing trends.

There are a few exceptions, such as pickup trucks, which have been in increasingly high demand as contractors and fleets rebound along with the economy. But there are great deals to be had on “nearly new” luxury cars and a number of other models, according to such experts as Tom Webb, the chief economist for Manheim, which runs some of the nation’s largest used vehicle wholesale auctions.

Auto Insight!

“Prices will continue to decline because of increased supply,” Webb told TheDetroitBureau.com, “mostly from off-lease vehicles.” The downward trend, he added, should continue for at least the next 18 months.

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Expect to Pay More for Your Next Used Car

But trade-ins will be higher, as well.

by on Feb.07, 2012

Expect to pay more for that "previously-owned" car in the months ahead.

There’s good news and bad news for used car buyers.  On the down side, prices will likely be higher due to strong demand.  But that also should translate into better trade-in prices, as well, according to an automotive industry trade group.

The National Automobile Dealers Association is predicting that used car prices will rise again but at a slower pace than in 2011. Those higher used vehicle prices will be the result of Increasing demand and a drop in the supply of previously-owned cars and trucks, said Jonathan Banks, executive automotive analyst with the NADA Used Car Guide.

On the positive side, “Consumers shopping for either a new or used vehicle will benefit this year from higher trade-in values along with loosening credit,” Banks said.

All the News!

For dealers, reliance on customer trade-ins will increase as they strive to meet the challenges of growing demand in a supply-constrained market. Dealers are facing a particular struggle coming up with “nearly new” two to four-year-old vehicles due to the downturn in the new car market over the last four years.  In particular, there are significantly fewer vehicles coming off-lease as many lenders curtailed their leasing programs during the depths of the Great Recession.

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