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With a lack of used vehicles and rental units returning to market, demand continues to outweigh supply. When will the market come back down to earth?
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Overall used vehicle values are at strong levels. Crossover values are holding steady but there is cause for concern in the near future. Sedan values are expected to improve or stabilize as more crossovers enter the market.
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Prices and volume are not expected to plummet in 2019, but industry experts seem to feel that the best-case scenario will be a plateau, and more realistically, will fall slightly.
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The average 12-month depreciation through the end of November for all vehicles was 12.5%.
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While luxury vehicles continue to struggle, overall vehicle values held steady last week, according to Black Book’s Oct. 8 Market Insights report.
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The firm attributed the strong vehicle retention in October to increased replacement activity stemming from Hurricanes Harvey and Irma. However, the increased replacement activity seen in October is expected to be the last boost to come from the hurricanes.
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Toyota, Porsche, General Motors and Subaru were some of the big winners in Kelley Blue Book’s 2017 Best Resale Value Awards, annual awards that recognize vehicles expected to best retain their value over the first five years of ownership.
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The overall fleet vehicle market depreciated by 12.1% over the previous year; however, the depreciation rate for cars was 14.8% and is expected to increase in 2015.
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New, three-hour “fleet jam session” includes a market overview from Ricky Beggs of Black Book, a blue-ribbon panel on fleet trends and roundtables with access to a team of fleet experts.
Read More →Eric Ibara, director of residual value consulting for Kelley Blue Book, will present a seminar at the 2014 Car Rental Show that uses real case studies to provide insights into the factors affecting residual values for popular rental car models.
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