RVI Forecasts Price Decline Coming Up in 2018

Rene Abdalah
Vice President, Passenger Vehicle
RVI Group

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.

Here’s the latest edition of RVI Risk Outlook

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.

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