ALG Forecasts Residual Values for Next Few Years

Lyman_Eric_ALG_100w

Eric Lyman
Direc­tor of Resid­ual Val­ue Solu­tions
ALG

ALG expects used mar­ket val­ues to decrease by 4% to 5% over next 12 months on over­all indus­try aver­age par­tial­ly dri­ven by used mar­ket demand soft­en­ing rel­a­tive to new mar­ket demand; Low lev­els of used sup­ply have so far been coun­ter­act­ing expect­ed impact from weak­er demand.

ALG looks at short-, mid-, and long-term resid­ual val­ues – click here to read

Look­ing 2–3 Years Ahead, ALG Sees Used Val­ues 8–10% Low­er than Cur­rent Prices:
Com­bi­na­tion of reduced demand and ris­ing sup­ply in used mar­ket is expect­ed to add pres­sure on used mar­ket prices going for­ward.

Long-Term Out­look on Resid­ual Val­ues:
ALG believes used mar­ket val­ues will fur­ther soft­en and decrease dur­ing next few years, low­er­ing resid­ual val­ues.

ALG’s 24-Month and 36-Month Resid­ual Out­look:
24-month down 4 ppts (of MSRP) from cur­rent used mar­ket val­ue of 2-year-old vehi­cles, and 36-month down 5 ppts low­er than actu­al 36-month auc­tion returns at indus­try lev­el.

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