Mexican Media Brands
Used-Car Prices Fall in U.S. as Supplies Grow
A flood of cars and trucks with expiring leases are pouring into the American used-car market, pushing down prices and hiking inventories, The Detroit News reports.
#economics
Share
A flood of cars and trucks with expiring leases are pouring into the American used-car market, pushing down prices and hiking inventories, The Detroit News reports.
Analysts say the average used-car price has dropped 2% to just under $11,000 over the past year. During the same period, inventories of used cars grew by 140,000 vehicles to 9.8 million units.
When the great recession hit, new-car sales dropped and inventories of used cars shrank. The traditional gap between new and used car prices almost disappeared. Now the spread is widening again, and analysts expect continued growth in the used-car market into 2015.
The News cites data from online auto research firm TrueCar indicating that used-car sales in the first nine months of 2014 totaled 28.8 million units, up 3% from the same period last year. Sales of new passenger vehicles in January-September climbed 6% to 12.4 million units.
RELATED CONTENT
-
Inside Ford
On this edition of “Autoline After Hours” Joann Muller, Detroit bureau chief for Forbes, provides insights into what she’s learned about Ford, insights that are amplified on the show by our other panelists, Stephanie Brinley, principal analyst at IHS Markit who specializes in the auto industry, and Todd Lassa, Detroit Bureau Chief for Automobile.
-
On Headlights, Tesla's Autopilot, VW's Electric Activities and More
Seeing better when driving at night, understanding the limits of “Autopilot,” Volkswagen’s electric activities, and more.
-
China and U.S. OEMs
When Ford announced its 3rd quarter earning on October 24, the official announcement said, in part, “Company revenue was up 3 percent year over year, with net income and company adjusted EBIT both down year over year, primarily driven by continued challenges in China.” The previous day, perhaps as a preemptive move to answer the question “If things are going poorly in China, what are you doing about it?, Ford announced that it was establishing Ford China as a stand-alone business unit.