Used Car Prices Set For A Decline: ALG
Published: August 5th, 2014
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The current shortage of used cars, along with record prices for second-hand vehicles, is likely to come to an end, according to ALG.
According to ALG, June 2014 marked the lowest level of used vehicle supply, with both Cash for Clunkers (which took an estimated 700,000 vehicles off the road), as well as low new vehicle sales from 2008-2012 making used cars a scarce commodity.
But with rising sales over the past two years, a new pool of trade-ins, as well as vehicles coming off short 24 and 36 month leases should mean a broader supply of used cars. Currently, the lack of new car sales in 2009 is affecting used car inventory levels today, but ALG’s forecasts predict an upswing occurring in 2016.
More by Derek Kreindler
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Too bad this doesnt include 08-09 H2 pricing, they're approaching their original cost brand new with 30k+ miles. H1 alphas are long since well above original cost value for anything not well offroaded. Appreciating in value and only 8 years old in the alphas case. Rediculously high pricing.
There will be a surge of used EVs coming off lease soon; the 3-year lease clock started in late 2010 but really got moving in 2012 as the Leaf fleet grew (not to mention Teslas). I've already seen used 2011 Leafs going for as low as $13k (dealer retail), with the same mileage my 2012 will have when its 3-year lease is up. No way I'll pay the dealer another $18k to keep it then. I really don't know what the mfrs and dealers will do to move used BEVs.
Used car prices are coming down now, thanks to all the GM recalls! As an earlier article points out, prices of recalled GM models are dropping, even for models that have had the ignition/other recall repairs done. Eventually it'll force non-GM car prices to drop as well, since there's a flood of GM cars that have been recalled, and that price competition will drag down the overall market.
This article reminds me of Steve Lang. What happened to him? He hasn't had an article since June and isn't listed on the masthead any more. Did he just disappear or did I miss an announcement?