Senior Director of Editorial and Data Services
National Automobile Dealers Association
Heightened competition in new vehicle market transferring over to used market; Each redesign and new model introduction narrows degree of separation between models w/in competitive set; Luxury lease subvention rising, but too early to tell if future used retention is unduly threatened because of it.
Falling Used Supply Will Help Raise Used Luxury Prices Again this Year:
Should be up by 1.9%, lower than overall market, but still at historic high levels.
For 1st Time in Years, Downside Price Risk on Horizon:
Due to off-lease growth in 2013 and total used supply growth in 2014.
Consumer Demand Becoming Dispersed Across Brands:
OEM reaction to promote growth or protect share will play critical role in determining degree of used price change.