Used Car Market Report & Outlook
Waves of Off-Lease Vehicles Keep Coming, But Now They’re Different
Friday April 27, 2018
Article Highlights
- Waves of off-lease vehicles keep on rolling into dealer used-car lots, but the product mix returning this year and next will present stiff competition to the new-car market, says Charlie Chesbrough, Cox Automotive’s senior economist.
- That’s because the returning off-lease vehicles will contain a hefty share of CUVs, SUVs and pickup trucks – “the products consumers are most interested in,” he says.
- As batches of formerly leased utility vehicles and pickups descend on the used-vehicle market, they will threaten new-car segments and “provide a viable alternative for some car shoppers,” Chesbrough says in the 2018 Cox Automotive Used Car Market Report & Outlook.
Waves of off-lease vehicles keep on rolling into dealer used-car lots, but the product mix returning this year and next will present stiff competition to the new-car market, says Charlie Chesbrough, Cox Automotive’s senior economist.
That’s because the returning off-lease vehicles will contain a hefty share of CUVs, SUVs and pickup trucks – “the products consumers are most interested in,” he says.
In contrast, off-lease vehicles in recent years skewed toward cars. Today’s consumers show less interest in those.
As batches of formerly leased utility vehicles and pickups descend on the used-vehicle market, they will threaten new-car segments and “provide a viable alternative for some car shoppers,” Chesbrough says in the 2018 Cox Automotive Used Car Market Report & Outlook.