Used Car Flood from Off-Lease Units is Well Under Way

Automotive News - April 21, 2014

Man­heim pre­dicts off-lease units will rise to 2.1 mil­lion this year and 2.5 mil­lion in 2015. It’s good news for deal­ers look­ing for rea­son­ably priced late-mod­el used vehi­cle, but it will also present a few prob­lems. Greater sup­ply means that new car buy­ers will see reduced trade-in val­ues of their cur­rent vehi­cles. Plus, falling used-vehi­cle prices will bring falling resid­ual prices, with the con­sumer hav­ing to pay more to make up the dif­fer­ence.



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