Senior Market Analyst of Automotive Insights
Kelley Blue Book
Luxury vehicles have suffered from high price point and consumers less willing to pay premiums w/ values dropping 7% to 10% from year ago, surpassing industry average of 5.4% decline; Another drag on used luxury vehicles have been attractive finance and lease offers on luxury vehicles.
Improved Quality and Amenities Offered in Most Mainstream Vehicles:
Another motivating force swaying buyers away from the entry-level luxury segment.
Reduced Demand for Rental Cars Prompting Agencies to Trim their Fleets:
Helped to increase inventory at auctions, putting additional downward pressure on prices.
Gap Between New- and Used-Vehicle Prices is Tighter:
After factoring in typically lower finance rates and incentives on new vehicles.