Executive Automotive Analyst
NADA Used Car Guide
Lender investments are expected to come increasingly under pressure as credit transitions from an exceptional period of low risk to one of decidedly higher risk. Credit conditions will continue to be favorable for some time, but not at quite the same unprecedented level. Credit conditions are expected to weaken for auto loans. This will put downward pressure on used vehicles prices, as will expanding pool of used vehicles.
Federal Reserve Decision to Raise Short-Term Interest Rates Expected in Q3 2015:
Will push auto loan rates higher for first time in a decade, although rates will likely rise slowly.
Used Vehicle Price Compression Also Driven by Off-Lease Volume Increase:
Made it to 3.2 million units in 2014 and second only to 1999’s total of 3.3 million.
NADA Expects that New Vehicle Pricing Pressure Will Also Soften Used Prices:
Depreciation of vehicles up to 8 years old expected to jump from 14% this year to near 18%.