Staff Writer - CheersandGears.com
September 16, 2012
This year saw the average price of the used car reach an all-time high due to severe shortage of used vehicles.
“The supply right now is so low, that is controlling everything in the used-market values. There just aren’t enough vehicles out there relative to used-car demand,” said Eric Lyman, ALG’s vice president of residual value solutions.
However the supply is beginning to increase slowly thanks in part turn-around in new vehicle sales. With this, ALG believes within the next twelve months, the average used-vehicle price will fall 4 to 5%.
“We’re seeing sort of a landing back to a normal used-car market environment. With the financial crisis of 2008, you see that huge decline in the used-car value index. Since that time, we’ve seen this huge recovery,” said Lyman.
They also see within two to three years, the average price dropping 8 to 10%.
Source: Automotive News (Subscription Required)
William Maley is a staff writer for Cheers & Gears. He can be reached at firstname.lastname@example.org or you can follow him on twitter at @realmudmonster.