Although used vehicle prices have risen steadily in recent years due to a deluge of off-lease, option-rich SUVs, and trucks hitting used lots, experts say this trend is set to hit a turning point, according to new research from Edmunds.
Edmunds’ revamped Industry Center page compiles digital product offerings, additional resources to support shoppers and dealers while shelter-in-place orders limit in-store interaction and sales.
Analysts forecast a SAAR of 11.9 million in March due to market disruptions caused by the COVID-19 crisis.
Truck wars heat up as more options become available and amenities draw in a rapidly expanding base of shoppers.
Although the average interest rate on a new-vehicle loan is expected to drop year over year, analysts say rates will hit 3-month high as automakers curtail promotional deals, 0% finance offers.
The long, car-heavy list of vehicles set to depart the new vehicle market in 2020 includes the venerable Chevrolet Impala, which has been in noncontinuous production since 1957.
Edmunds’ latest Used Car Report finds high off-lease volumes have suppressed prices and widened the gap between new and 3-year-old models to an average of $14,951.
Edmunds analysts say Black Friday promotions helped suppress new auto loan interest rates last month, registering a year-to-date low of 5.5% and an 8.3% year-over-year decline.
The average interest rate for a U.S. new-vehicle loan fell below 6% for the first time all year as automakers and dealers extended model-year selldown promotions.
TransUnion analysts report more consumers in the prime and superprime credit tiers are choosing to buy used as off-lease units continue to flood the market, offering a budget-friendly alternative to increasingly expensive new cars.
