Slumps in New Sales, Leasing Continues to Impact Used Values
Kbb.com anticipates the slowdown in new-car sales and leasing will impact used-car values for years to come, with current supply reductions expected to play a key role in the wholesale used-car market.
IRVINE, Calif. — Kelley Blue Book’s Kbb.com said that it anticipates the new-car sales and leasing slumps of recent years will impact used-car values in the coming years. Current supply reductions, caused by the decline in new-car sales since 2008 and the drop in leasing throughout 2008, will play a very prominent role in the wholesale used-car market in the future, according to the company's Blue Book Market Report for August 2011.
In response to supply reductions, the average value of a one- to three-year-old used vehicle has increased from $15,000 in 2008 to more than $23,000 in 2011, an average increase of nearly 16 percent each year, according to Kbb.com. The Website suggests that it will take several years of strong new-car sales to replenish the shortage of used vehicles driving values up today.
“While the pace of used-car appreciation is likely to subside as supply, and ultimately sales, improve, we expect used-vehicle values to remain strong for the next two to three years," said Alec Gutierrez, manager of vehicle valuation for Kelley Blue Book. "Consumers who plan to sell or trade-in a used car soon will likely see their vehicle hold its value well. Alternatively, shoppers in the market for a used car will continue to pay more, making it difficult to buy at a discount."
For more information, visit www.kbb.com.
Average Value of a One- to Three-Year-Old Vehicle in July | |
2008 | $15,042 |
2009 | $18,167 |
2010 | $20,601 |
2011 | $23,353 |
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