Exec¬≠u¬≠tive Auto¬≠mo¬≠tive Ana¬≠lyst
NADA Used Car Guide
Lender invest¬≠ments are expect¬≠ed to come increas¬≠ing¬≠ly under pres¬≠sure as cred¬≠it tran¬≠si¬≠tions from an excep¬≠tion¬≠al peri¬≠od of low risk to one of decid¬≠ed¬≠ly high¬≠er risk. Cred¬≠it con¬≠di¬≠tions will con¬≠tin¬≠ue to be favor¬≠able for some time, but not at quite the same unprece¬≠dent¬≠ed lev¬≠el. Cred¬≠it con¬≠di¬≠tions are expect¬≠ed to weak¬≠en for auto loans. This will put down¬≠ward pres¬≠sure on used vehi¬≠cles prices, as will expand¬≠ing pool of used vehi¬≠cles.
Fed¬≠er¬≠al Reserve Deci¬≠sion to Raise Short-Term Inter¬≠est Rates Expect¬≠ed in Q3 2015:
Will push auto loan rates high¬≠er for first time in a decade, although rates will like¬≠ly rise slow¬≠ly.
Used Vehi¬≠cle Price Com¬≠pres¬≠sion Also Dri¬≠ven by Off-Lease Vol¬≠ume Increase:
Made it to 3.2 mil¬≠lion units in 2014 and sec¬≠ond only to 1999‚Äôs total of 3.3 mil¬≠lion.
NADA Expects that New Vehi¬≠cle Pric¬≠ing Pres¬≠sure Will Also Soft¬≠en Used Prices:
Depre¬≠ci¬≠a¬≠tion of vehi¬≠cles up to 8 years old expect¬≠ed to jump from 14% this year to near 18%.