Used Car Prices Finally Dropping: ALG
There’s good news for people thinking about jumping into the used car market.
According to ALG analysts, a wave of newer vehicles have begun to enter the secondhand market, helping gradually bring resale values in line to what they were before the 2008 economic downturn. The analytics division of TrueCar estimates that last month marked the lowest number of used vehicles available for sale and that the trend is finally shifting.
SEE ALSO: Used Car Prices Expected to Fall in 2014: NADA
ALG estimates that by 2017 the average new vehicle will retain 49.4 percent of its value after three years as opposed to the 54.6-percent retention recorded for vehicles through June 2014. The company also forecasts that the growth of used vehicles on the market will bring the industry back to 46-percent residual average by 2019.
“The continued strength of new-car sales is increasing the availability of high-quality used cars as shoppers continue to trade in their old vehicles,” said Larry Dominique, president of ALG and executive vice president at TrueCar. “Additionally, because of the popularity of short 24- and 36-month leases, the drought of used-car supply is already starting to subside. As a result, we expect a steady decline in used-vehicle prices.”
Jason Siu began his career in automotive journalism in 2003 with Modified Magazine, a property previously held by VerticalScope. As the West Coast Editor, he played a pivotal role while also extending his expertise to Modified Luxury & Exotics and Modified Mustangs. Beyond his editorial work, Jason authored two notable Cartech books. His tenure at AutoGuide.com saw him immersed in the daily news cycle, yet his passion for hands-on evaluation led him to focus on testing and product reviews, offering well-rounded recommendations to AutoGuide readers. Currently, as the Content Director for VerticalScope, Jason spearheads the content strategy for an array of online publications, a role that has him at the helm of ensuring quality and consistency across the board.
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