Used vehicles will continue to be priced high until 2013, RVI forecasts

Article by Christian A., on November 24, 2010

Prices of recent-model used vehicles will remain high until 2013 due to a shortage, according to Rene Abdalah, vice president of RVI Group, a company in Stamford, Conn. that insures residual values for the vehicle-leasing industry.

Abdalah predicts that the stocks of 2- to 5-year-old used cars and trucks will fall 19% in 2011 from 2010 and that the inventories of those vehicles then will fall 35% more in 2012 and hit bottom in 2013 after a drop of 10% more. He explained that this situation will not be anything that was ever seen before.

During a presentation at the Kelley Blue Book Residual Value Symposium earlier this month, Abdalah said that the used-vehicle prices will be relatively high and dealers will be scrambling to supply their used-car lots due to the shrinkage in inventory, which is a result of declining new-vehicle sales. He said that it will be a “tough situation” for dealers as they’d have to “compete harder to get those vehicles.”

Abdalah expects that because of the fierce competition, new-vehicles prices will go down through subvented leasing and incentives.

And when new-car prices are reduced, it will help moderate used-vehicle prices. Abdalah concluded that while used-car prices will continue to increase, they won’t be as high as what many imagine. [via autonews - sub. required]

Topics: sales, united states

If you liked the article, share on:

Comments

Recommended

During car crashes and accidents, there are times that its occupants can’t get out easily. There are times when the only way to get out of that situation is to...
by - February 23, 2017
Could this be a special version of Ferrari’s much acclaimed LaFerrari? No matter how we look at it, the patent images for this sports car from Ferrari indicate its striking...
by - February 23, 2017
How fast can a 2017 Chevrolet Camaro ZL1 actually go? Considering the amount of power lurking underneath its line-laden bonnet, the 2017 Camaro ZL1 is capable of achieving a top...
by - February 23, 2017
As it turned out, we’ll be seeing Toyota’s new super supermini at the 2017 Geneva Motor Show in March. It’s time we all get to meet the new Toyota Yaris...
by - February 23, 2017
Opel revealed it has sweetened the pot for 2017 Insignia Grand Sport customers with the Opel Exclusive program. Through this program, the brand hopes to introduce a wide selection of...
by - February 22, 2017
Facebook

Youtube Channel

Tip Us
Do you have a tip for us?
Did you film an important event?
Contact us
Newsletter
Subscribe to our newsletter!
Subscribe
Galleries