Black Book: Hurricanes Boosted Used-Vehicle Values 2%
The firm said hurricanes Harvey and Irma had a similar effect on used-vehicle values as the Clash for Clunkers program had on values in 2009.
Courtesy of Enterprise Holdings.
LAWRENCEVILLE, Ga. — The hurricanes that swept through Texas and Florida over the summer destroyed and damaged as many as 900,000 vehicles, and the replacement activity that the catastrophic events spurred boosted used-vehicle values by almost 2%, according Black Book.
Through the three-month period ending in October, the retained value of used vehicles sold at auction increased 1.8%. This was due to the fact that since somewhere between 500,000 and 900,000 vehicles were destroyed, there was a large volume of vehicles that needed to be replaced.
This surge in demand caused wholesale values for many vehicle segments to depreciate at much slower rates, according to Black Book.
Anily Goyal, senior vice president of automotive valuation and analytics, compared the positive effect on used-vehicle values to the Cash for Clunkers program in 2009, when approximately 690,000 older-model vehicles were replaced and overall used vehicle retention increased 3.4%.
More Auto Finance
Interest Rates Further Squeeze Auto Consumers
Last month’s hike and a potential second increase this month add to a growing list of inflation woes that could continue to dent overall car sales.
Read More →
Mind Your Process
Consistent steps taken in various aspects of the F&I office can make valuable differences over time, similar to an outline for a best-selling book.
Read More →
Top Five Credit Application Fraud Flags
Compliance audits regularly reveal bad habits that can lead to fraud charges and should have been stamped out decades ago.
Read More →
More Auto Loans for the Taking in August
Riskier categories were on the uptick for the month as lenders loosened access in several areas while balancing out the exposure in another, Cox Automotive reported.
Read More →
July Was Hot for Auto Borrowers
Credit proved readily available for many, but most loans left buyers in negative territory, Cox Automotive said.
Read More →
Dealer Lender Preferences Revealed
When lenders provide consistent, fast service, their overall satisfaction scores with dealers greatly improve, according to JD Power research.
Read More →
Auto Refi Savings Surge
Consumers with 84-month auto loan terms who refinanced saved the most on monthly payments, according to a new report by auto refinancing provider Caribou.
Read More →
Subaru Enters Lending Business
The automaker follows other brands in adding captive financing in the U.S., and says the move will strengthen its position here.
Read More →
Positive Equity Reaches Record High
Mainstream vehicle owners who bought a car seven years ago are likely to have positive equity when trading in for a new vehicle, according to second-quarter Edmunds data.
Read More →
Dealerships Are Paying the Price for Extended Car Loans
Growing negative-equity scenarios mean such lengthy terms should be addressed in a forward-looking way to make them work for the dealer and the consumer down the road.
Read More →