Experts see challenges, but no crisis in used-car market
They say a major collapse seems unlikely, even as the U.S. auto market declines.
Here’s what most experts anticipate in the used-vehicle market over the remainder of the year and into 2018: retention values dragged down by returning inventory and high new-vehicle incentives, a problem compounded by lenders further cutting back on subprime lending as delinquencies rise.
There are enough negative trends in the marketplace that it occasionally draws comparisons from some observers to the housing market just before the mortgage crisis that triggered the Great Recession.
But most experts in the used-vehicle arena scoff at such comparisons. While the industry, including the used-vehicle market, faces some significant challenges, they say, the market has thus far proved to be relatively resilient. They say a major collapse seems unlikely, even as the U.S. auto market declines.