dlq04

From Automotive News:

The long-awaited decline in used-vehicle prices has finally arrived.

Prices have slipped for three straight months due to an influx of off-lease vehicles, just as analysts predicted.

Amid widespread offers of 0 percent, 72-month new-car loans, declining new-vehicle transaction prices are putting pressure on used-vehicle margins.

Hertz Corp., Avis Budget Group Inc. and Enterprise Holdings all say they had some vehicles that they had to park while awaiting recall-related repairs, postponing those cars’ sales. Some also kept cars in their fleets to meet demand from drivers who needed replacements after their own cars suffered damage from severe weather. Now, those retired rental cars will have to be unloaded by the thousands this fall, in a market in which used-vehicles are more plentiful and prices already are dropping.

Used-vehicle prices are under pressure from both the additional supply coming from rental-car companies and from strong new-car sales, which have left many dealers with more trade-ins than they can handle. Those trade-ins are showing up in auction lanes, squeezing used-vehicle prices.

Lainey

Now you tell me!!! Daughter in law "moved back" into a 2006 Sentra a couple of months ago. I was surprised at how much those cars sell for.

Son took over her Focus (2005), retiring his 2004 Chrysler Sebring with over 225K on the odometer. Knock wood, their current "new" cars haven't had to spend much time at the shop.

RedY2KS2k

Sounds like the fallout from "cash for clunkers" has finally worked its way through the system. You give an inflated trade-in value to anything worth less than $4500, it affects prices at the lower end of the market for years. This precipitated a "trickle up" effect...

dlq04

Lower trade in value will definitely 'hurt' new car sales..... it's a big concern to dealers.