Edmunds Q4 2013 Used Car Market Report just came out on February 11th.
Found that year-over-year used car prices are falling & could fall another 2% in next year.
- Glut of vehicles of used cars will drive down prices as much as 2% in 2014
- Drop in used car prices will affect market and all car buyers
- Trend will cause a ripple effect, influencing shoppers of both new & used cars
- New- and used-car markets feed off each other
- Boom in new car leases is leading to a higher number of lease returns
- Adds to growing inventory of used cars, forcing their prices down
- Drop in used-car values; rise in the monthly payments of new car leases.
- Softer residual values cause higher monthly payments
- Provides dealer with better certified pre-owned (CPO) car offers
- Lower vehicle trade-ins offers leads to higher retail vehicle inventory