CNW Research says that the boom in new vehicle leasing is causing automakers to overvalue future residual values 5% to 10% to get monthly payments lower and beat out the competition; Dealers and OEMs will still see some gains from leasing boom – certified pre-owned (CPO) vehicles are coming from certifiable used cars at end of term; CPOs are the most desired UVs on market and are seeing sales grow dramatically.
Tepid UV Sales Volume in October Partially Comes from Fed Shutdown:
Nearly 500K fed-owned vehicles were slated for sale but postponed until re-opening.
Private-Party Sales Doing Very Well with 18% Volume Gain this Month:
Franchised dealers seeing slight gain at 0.4% and Independents down 7.7%.
September Saw Nearly 107K UVs Leased – 4.5% Over Year Ago:
Typical used vehicle lease is near-luxury and luxury segments including high-end SUVs.