RVI Predicts 6.6% Residual Value Drop by 2018

Rene Abdalah
VP, Pas­sen­ger Vehi­cle
RVI Group

RVI pre­dicts that resid­ual val­ues will see a big drop by 2018 — 6.6% below their cur­rent lev­els. That will come through increas­es in leas­ing through 2017 and a grow­ing sup­ply of used vehi­cles in the mar­ket through 2020. Anoth­er part of used vehi­cle prices soft­en­ing is expect­ed to come through heavy com­pe­ti­tion in the new vehi­cle sales with an increase in incen­tive activ­i­ty.

Here’s the lat­est edi­tion of RVI Risk Out­look

Nom­i­nal Prices Down 0.6% from July, but Up 1% Year-Over-Year:
Real used vehi­cle prices down 0.7% from July, and down 1.4% from year ago.

Decline in Resid­ual Val­ues Not Observed in Every Vehi­cle Seg­ment:
Larg­er vehi­cles and many lux­u­ry seg­ments have seen increas­es year-over-year.

Nom­i­nal Prices in Cana­da Down 0.8% in August but Up 9.1% Year-Over-Year:
Real prices up 1.1% from July, and showed a year-over-year increase of 6.6%.

 



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