Posts Tagged: Used car prices
Used car prices fall for certain vehicles
Used car prices fall for German Luxury brands Used car prices are up substantially in 2019 as middle income buyers compete for affordable vehicles, driving up used car prices. The one exception is European luxury cars. The used car prices for those vehicles are actually falling (Automotive News, Oct 14, 2019 “As luxury residuals fall, some cite Tesla) Too many German luxury cars cause used car prices to fall The supply of 3-yr old premium luxury vehicles has risen by 20% since 2006. That’s a significant increase compared to other … Read More
Used car prices going up
Why are used car prices going up? Used car prices vary according to supply and demand, but there are other factors in play as well. For example, when car makers put large financial incentives on new leased vehicles and the incentives work to increase lease sales that actually decreases the vehicle’s residual value at the end of the lease. In other words, two or three years down the road as the vehicles come off lease, the used car market is flooded with those same off-lease vehicles. The increase in the … Read More