• Sign in to follow this  
    Followers 0

    Used Car Prices Expected To Fall In 2015


    • Good News for those planning to buy a used car

    If you are considering buying a used car this year, then we have some good news for you. A new vehicle depreciation report from used car value service, Black Book and Fitch Ratings Inc., says that 2015 will see used car values depreciate 14.5 percent. This is an increase from 2014's deprecation rate of 12.1 percent.

    So why the increase in depreciation? It comes down to two key factors; an increased supply in used cars and a larger volume of off-lease vehicles.

    “2014 depreciation was defined by pockets of volatility due to seasonality, harsh weather patterns and falling fuel prices impacting smaller cars and trucks of all sizes. Looking ahead, lower consumer demand and CAFÉ-driven model competition will place higher depreciation pressure on smaller car segments particularly, but trucks should have stable retention in 2015 due to balanced production levels and strong housing and service economies,” said Anil Goyal, Vice President of Analytics and Strategic Partnerships for Black Book.

    Source: Auto Guide, Kicking Tires

    0


    Sign in to follow this  
    Followers 0


    User Feedback


    I can only hope my Avalon stops it's sinking depreciation. I swear, every time I think I'm close to finally having it paid down below its value, it's dropped another couple grand. Toyota dependability? Proven. Toyota value retention? Pfft. It's really bites me in the ass when I realize how at the time I bought the Avalon, it was worth more than my Legacy (all things considered equal) and now it's worth much less. It's still held onto a fair amount of value for its age, but that just hurts.

    0

    Share this comment


    Link to comment
    Share on other sites

    Good news for buyers and bad for sellers, because there are people who buy a new car a true price without much use, then this person should sell it cheap. Good information colleague, thanks for sharing and good luck for buyers and sellers.

    0

    Share this comment


    Link to comment
    Share on other sites


    Your content will need to be approved by a moderator

    Guest
    You are commenting as a guest. If you have an account, please sign in.
    Add a comment...

    ×   You have pasted content with formatting.   Remove formatting

    ×   Your link has been automatically embedded.   Display as a link instead

    ×   Your previous content has been restored.   Clear editor




  • Popular Stories

  • Today's Birthdays

    1. 2005 EquinoxLS
      2005 EquinoxLS
      (41 years old)
    2. Shaula
      Shaula
      (36 years old)
  • Similar Content

    • By William Maley
      A record number of consumers are finding themselves 'underwater' when it comes time to trade-in their vehicle - the vehicle is worth less than what they owe on their loan.
      The Detroit Free Press cites a study done by Edmunds revealing that in the second quarter of this year, 32 percent or nearly one-third of vehicles being traded in fall into the 'underwater' category. This isn't good news for consumers since the difference is tacked on to the new vehicle they had their eye on.
       To put this in perspective, the previous high was 29.2% in 2006, around the time where the housing market was reaching its cresting point.
      “There’s been a lot of water building behind this dam for some time because of higher transaction prices, lower down payments and long-term loans," said Greg McBride, chief analyst with Bankrate.com.
      "It’s problematic for the consumer because there’s no foolproof way to eliminate his financial exposure. If the car gets stolen, is totaled or you get new car envy while you’re upside down then it’s a big problem."
      In October, the average transaction price of a new car was $34,663 according to Kelly Blue Book. The average length of a new car loan hovers around 68 months according to Experian Automotive. This rises to 72 months if it's a subprime buyer - someone whose credit score is below the low 600s. Not helping matters is the amount of vehicles being returned from leases, flooding the used car marketplace. This increase is causing dealers not willing to spend a lot of money at auction.
      Source: Detroit Free Press

      View full article
    • By William Maley
      A record number of consumers are finding themselves 'underwater' when it comes time to trade-in their vehicle - the vehicle is worth less than what they owe on their loan.
      The Detroit Free Press cites a study done by Edmunds revealing that in the second quarter of this year, 32 percent or nearly one-third of vehicles being traded in fall into the 'underwater' category. This isn't good news for consumers since the difference is tacked on to the new vehicle they had their eye on.
       To put this in perspective, the previous high was 29.2% in 2006, around the time where the housing market was reaching its cresting point.
      “There’s been a lot of water building behind this dam for some time because of higher transaction prices, lower down payments and long-term loans," said Greg McBride, chief analyst with Bankrate.com.
      "It’s problematic for the consumer because there’s no foolproof way to eliminate his financial exposure. If the car gets stolen, is totaled or you get new car envy while you’re upside down then it’s a big problem."
      In October, the average transaction price of a new car was $34,663 according to Kelly Blue Book. The average length of a new car loan hovers around 68 months according to Experian Automotive. This rises to 72 months if it's a subprime buyer - someone whose credit score is below the low 600s. Not helping matters is the amount of vehicles being returned from leases, flooding the used car marketplace. This increase is causing dealers not willing to spend a lot of money at auction.
      Source: Detroit Free Press
    • By William Maley
      Another week has passed and some new information has come to light in the Volkswagen diesel scandal.
       
      First off, Volkswagen has confirmed one of their diesel engines doesn't have the cheat. The EA 288 TDI engine used in vehicles for the European-market has been checked out to see if it had the illegal software. In a statement issued by Volkswagen, the engine did not have “software constituting an improper defeat device as defined in laws is installed in vehicles with EA288 EU5 as well as EU6 engines in the European Union with those engines comply with legal requirements and environmental standards."
       
      Also, one of the questions that have been up in the air is how would the scandal affect the prices of used Volkswagen TDI models. Kelly Blue Book looked at data from auto auctions before and after the scandal broke. According to their research, the average price of diesel models dropped 16 percent. Average prices of gas models dropped 2.9 percent in the same time.
       
      "According to Kelley Blue Book Field Analysts, some auctions are still holding off on selling the affected Volkswagen inventory. While Volkswagen diesel auction prices are in decline, we could see larger fluctuations depending on how this inventory is handled," said Tim Fleming, analyst for Kelley Blue Book.
       
      Source: Volkswagen, Kelly Blue Book
       
      Press Releases are on Page 2



      Page 1 of 2 1 2 → Last »



      Click here to view the article
    • By William Maley
      Another week has passed and some new information has come to light in the Volkswagen diesel scandal.
       
      First off, Volkswagen has confirmed one of their diesel engines doesn't have the cheat. The EA 288 TDI engine used in vehicles for the European-market has been checked out to see if it had the illegal software. In a statement issued by Volkswagen, the engine did not have “software constituting an improper defeat device as defined in laws is installed in vehicles with EA288 EU5 as well as EU6 engines in the European Union with those engines comply with legal requirements and environmental standards."
       
      Also, one of the questions that have been up in the air is how would the scandal affect the prices of used Volkswagen TDI models. Kelly Blue Book looked at data from auto auctions before and after the scandal broke. According to their research, the average price of diesel models dropped 16 percent. Average prices of gas models dropped 2.9 percent in the same time.
       
      "According to Kelley Blue Book Field Analysts, some auctions are still holding off on selling the affected Volkswagen inventory. While Volkswagen diesel auction prices are in decline, we could see larger fluctuations depending on how this inventory is handled," said Tim Fleming, analyst for Kelley Blue Book.
       
      Source: Volkswagen, Kelly Blue Book
       
      Press Releases are on Page 2


       
      Volkswagen confirms: EA288 engines designed for EU5 and EU6 are not affected
      Thorough appraisal of the Diesel emissions issue

      Volkswagen confirms today that no software constituting an improper defeat device as defined in law is installed in vehicles with EA 288 EU5 as well as EU6-engines in the European Union. Consequently, new vehicles of the Volkswagen Group offered within the European Union with those engines comply with legal requirements and environmental standards.
       

      Volkswagen AG is systematically reviewing this issue worldwide. The group strives for a holistic solution for complying with the respective valid standards.
       
      After thorough examination it is now confirmed that no software constituting an improper defeat device as defined in law is installed in vehicles with EA 288 EU5-engines. Before, Volkswagen Group has confirmed that new EU6-compliant vehicles offered within the European Union fulfil all legal requirements and environmental standards.
       
      Volkswagen customers can visit the corporate websites such as www.volkswagen.de/info, which was set up on October 2, 2015 and enter the chassis number of their vehicle to find out straight away whether their vehicles are affected. Similar customer websites are active in the other EU countries and for the Audi, SEAT and Škoda brands.
       
      Work on the technical solutions detailed in the plan of measures is currently proceeding at full speed. Remedial action on the vehicles will begin in January 2016 – at no cost to customers. The measures are currently being developed for each affected series and each affected model year and will first be presented to the responsible authorities. Volkswagen will subsequently inform the owners of these vehicles over the next weeks and months.
       
      VOLKSWAGEN DIESEL VEHICLE PRICES DECLINE NEARLY 16 PERCENT, ACCORDING TO KELLEY BLUE BOOK DATA
      New-Car Shopping Activity Also Impacted by Recent Emissions Issue

      IRVINE, Calif., October 21, 2015 – Kelley Blue Book www.kbb.com, the only vehicle valuation and information source trusted and relied upon by both consumers and the automotive industry, today reports that average auction prices, along with new-car shopping activity on KBB.com, for Volkswagen diesel vehicles have declined four weeks after the diesel emissions issue was announced.
       

      The average auction price for Volkswagen diesel models dropped by nearly 16 percent since the news broke of the emissions crisis.[1] The average auction price for the brand's gasoline-powered vehicles declined by 2.9 percent.1 On KBB.com, Volkswagen new-car shopping activity for affected TDI models has decreased on average by 2.4 percent.
       
      "According to Kelley Blue Book Field Analysts, some auctions are still holding off on selling the affected Volkswagen inventory," said Tim Fleming, analyst for Kelley Blue Book. "While Volkswagen diesel auction prices are in decline, we could see larger fluctuations depending on how this inventory is handled."
       
      Volkswagen Site Metrics from Kelley Blue Book's KBB.com*
      The Volkswagen Golf SportWagen and Golf have seen the most significant declines in shopping activity, with decreases of 6.2 percent and 3.7 percent respectively. The Audi A3 and Volkswagen Jetta SportWagen are the only TDI models seeing increases in activity, at 1.6 and 3 percent respectively, which is consistent with segment-level traffic on KBB.com. Audi A3 shoppers are increasingly cross-shopping competing luxury models following the announcement. The most highly cross-shopped vehicles are the Lexus NX, BMW 2-Series and Mercedes-Benz CLA. **

       

      * Kelley Blue Book's KBB.com Site Traffic, Comparing September Pre- (Weeks of August 31-September 13) and Post- (Weeks of September 14-October 18) Announcement Data. Please note: Data is compiled weekly (Monday-Sunday).
       
      ** Kelley Blue Book's KBB.com Cross-Shopping Data for Week of October 12-18, 2015
       
      "During the past four weeks following the emissions announcement, traffic to KBB.com has generally decreased after an initial surge in interest for Volkswagen diesel models, likely because of the stop-sell and negative press," said Arthur Henry, senior manager of Strategic Insights for Kelley Blue Book. "Interestingly, with regard to cross-shopping data, consumers are not looking at fuel-efficient or hybrid vehicles. For example, shoppers interested in the Jetta TDI are looking to the Honda Civic, Mazda3 and Ford Fusion as alternatives, according to cross-shopping data from KBB.com."
    • By William Maley
      With the average price of new cars on the rise, the price of used cars follows suit. A new study done by Edmunds finds the average price of a used car has hit a new record high in the second quarter. The average price of a used car has climbed to $18,800, up 7.6 percent when compared to the same time last year.
       
      "People are buying more trucks and SUVs, and they're getting them better equipped. More expensive new vehicles means more expensive used vehicles," said Jessica Caldwell, analyst at Edmunds.com.
       
      What is causing the uptick in used car prices? The same items which are causing new car prices to go up; better economic outlook, low unemployment, low-interest rates, and low gas prices.
       
      But also helping the increase is the amount of off-lease vehicles entering into the used car marketplace.
       
      "With inventory finally at a better place, people have a lot more options," Caldwell said.
       
      Source: Chicago Tribune via The Detroit News
  • Recent Status Updates

  • Who's Online (See full list)