Vice President, Passenger Vehicle
RVI forecasts used vehicle prices should fall 4.9% from current their current pricing levels by 2018. That residual value decline will come from increased supply, greater competition, and higher incentives. Increased supply will come mainly from off-lease vehicles that come back to market. Leasing will continue to increase in new vehicle sales through 2018.
Nominal Used Vehicle Prices Increased 1.6% from October:
Nominal (seasonally adjusted, 2-5 year old vehicles) up 3.9% Y-O-Y.
Real Used Prices (After Adjusting for MSRP) Up 1.9% from October:
Compared to November 2014, real used vehicle prices were down 1.6%.
Canadian Real Used Car Prices Increased 8% Over November 2014:
Growing supply and condition of monetary exchange rate will lead to price decline.