VP, Passenger Vehicle
RVI predicts that residual values will see a big drop by 2018 — 6.6% below their current levels. That will come through increases in leasing through 2017 and a growing supply of used vehicles in the market through 2020. Another part of used vehicle prices softening is expected to come through heavy competition in the new vehicle sales with an increase in incentive activity.
Nominal Prices Down 0.6% from July, but Up 1% Year-Over-Year:
Real used vehicle prices down 0.7% from July, and down 1.4% from year ago.
Decline in Residual Values Not Observed in Every Vehicle Segment:
Larger vehicles and many luxury segments have seen increases year-over-year.
Nominal Prices in Canada Down 0.8% in August but Up 9.1% Year-Over-Year:
Real prices up 1.1% from July, and showed a year-over-year increase of 6.6%.