Used leasing has become growth area for new and used car dealers. Expect full-year used leases to hit 1.1M this year and as much as 1.7M next year. Franchised dealers are seeing it as more of a possible new source of revenue, and banks are loosening strings of carrying used-lease paper. Early reports in September showed used leases up 3.4%, with cap costs falling nearly 5% as lower-priced non-luxury used cars are being added to the mix.
Lower Wholesale Prices Have Sent Franchised Dealer Asking Prices Down:
Down to $11,309 vs year ago’s &11,729 while independent dealer prices have dipped only slightly.
Sub-prime Loan Approvals Up 17.7% Y-O-Y, but Only Third of a Percent M-O-M:
Latter figure reveals strong but measured approach to providing loans to that audience.
Used Diesel Cars Growing in Demand as 22% of Used Shoppers Considering It:
Hybrids are not as strongly desired on the used side at only 18% considering buying.