ALG Analyzes Used Car Trends and Forecasts Residual Values


Eric Lyman
Direc­tor of Resid­ual Val­ue Solu­tions

The per­cent­age of deal­er­ship trans­ac­tions attrib­ut­able to used car sales has been steadi­ly declin­ing since Jan­u­ary. Since their peak of near­ly 65% in 2010, deal­er used car trans­ac­tions have been eclipsed by new car trans­ac­tions as a per­cent­age of total vehi­cle sales.

Click here to read the Sept-Oct. issue of ALG’s Indus­try Report

Used Vehi­cle Val­ues that Hit His­tor­i­cal­ly High Lev­els Con­tin­u­ing to Soft­en:
ALG analy­sis indi­cates that while used sup­ply will con­tin­ue to be lim­it­ed, demand is shift­ing toward new vehi­cle pur­chas­es.

Days to Turn for New Vehi­cles Steadi­ly Creep­ing Up Since Octo­ber 2011:
For used vehi­cles they have remained rel­a­tive­ly flat dur­ing past 2 years.

ALG Expects Used Mar­ket Val­ues to Decrease by 4% to 5% Over Next 12 Months:
Over­all indus­try aver­age par­tial­ly dri­ven by used mar­ket demand soft­en­ing rel­a­tive to new mar­ket demand.



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