Senior Market Analyst of Automotive Insights
Kelley Blue Book
Used-car values dipped 3% in May due to falling oil prices and strong demand for new vehicles. During the next 3 months, KBB analysts expect values will continue to decline by as much as 6% to 7% as market continues to cool with softening demand and slowly improving supply conditions.
Consumers See New Car Only Slightly More Expensive than 1- or 2-year-old Used Car:
Helped to not only bolster new-car sales, but lessen demand at auction and drive down used-car values.
New Cars Have Become More Affordable:
Through incentives, low finance rates and improved credit availability, likely will continue to suppress UC values.
Fuel-Efficient Car Values Dropped 2% to 3% in May as Demand Eased with Falling Gas Prices:
The most significant declines came from formerly hot hybrid-car segment, which dropped 4%.