PIN Addresses Rebates and Used Prices

Heavy rebates and incentives on new vehicles usually speed up the depreciation on those models when they enter the used pipeline, according to Power Information Network (PIN), Auto Remarketing Magazine reports.

Other experts in the used-car industry have made similar claims, noting the drop in wholesale prices and used values when manufacturers were revving up cash back and incentives to push new vehicles off dealers' lots after 9-11.

While reports have come out that some automakers are trying to lessen such incentives, PIN has found that some vehicle segments show the reaction more significantly than others.

PIN says the compact convention car segment, including the Corolla, Civic, Focus and others, has displayed the most significant relationship between customer cash and used-car prices.

Next in line, comes the midsize sports category, which includes the Mustang, Eclipse, Monte Carlo and others. According to Auto Remarketing Magazine, PIN also said the compact sports car segment has also showed this trend.

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