Vice President, Passenger Vehicle
Residual values are expected to see change coming from changing dynamics in the US economy and in the new vehicle market. Stronger new vehicle sales and growing leasing activity, along with higher incentives, will lead to softening of residual values. Leasing growth is expected to continue over the next several years. RVI Group expects that used vehicle prices will fall by 8% from their current values by 2018.
Lease Penetration in New Vehicle Sales for Q1 2015 was 20.3%:
That was the first time leasing penetration has gone over 20% since 2000.
Used Supply of Compact Will Continue to Increase through May 2017 Before Levelling Off:
By 2018, used compact car prices are expected to drop 5.7% below current levels.
RVI Expects Softening of Canadian Used Vehicle Prices Over Next Five Years:
Expect RVI’s Canada used vehicle price index to fall by 2.8% from current levels.