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William Maley

Industry News: Used Car Prices To Go Down In The Coming Year

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William Maley

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 william.maley@cheersandgears.com or you can follow him on twitter at @realmudmonster.


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