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Although shoppers continue to flock toward pricier trucks and SUVs, steadily rising gas prices are beginning to stimulate consumer demand and increase residual values for smaller vehicles.
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Edmunds analysts say the industry is beginning to see the trickle-down effect from the rate increases happening at the federal level. February's annual percentage rate on new finance vehicles was expected to average 5.2%, up from 4.9% in the year-ago period.
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Thanks to a tight supply of late-model used vehicles, values don’t dramatically drop once the odometer crosses six figures, according to a new report from vehicle information site.
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Car buyers are putting down $504 more on a new-vehicle purchase than they did five years ago. But with buyers purchasing pricier cars and interest rates on the rise, something has to give, Edmunds.com analysis said.
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While low interest rates and consistent values are making it possible for the market to absorb the wave of newer, more expensive off-lease vehicles, demand for older, less expensive vehicles hasn't waned. But with fewer older vehicles available, sellers will be at a disadvantage, Edmunds said this week.
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Read More →Leasing accounted for 31% of new-vehicle sales in 2016, up from 29% in 2015. And according to the vehicle information, nearly one-third of all millennials turned to leasing to secure a new vehicle.
Read More →The vehicle information site expects new-vehicle sales to total 1.15 million units in January, a 31.5% decrease from December and a 0.7% decrease from January 2016.
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Edmunds this week unveiled a revamped online experience and refreshed new logo. The company has also dropped the '.com' from its name and will now be known as simply “Edmunds,” according to a company announcement.
Read More →Edmunds.com believes the industry will sell 1,629,011 new cars and trucks in December. If realized, the prediction puts the industry on pace to break last year's sales record. But the firm says it'll be a photo finish.
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