New-vehicle sales are on the rise due not only to demand originally held back by the Great Recession, but by consumers coming off of their leases for their next latest and greatest.
Automotive News reports Manheim Auctions chief economist Tom Webb proclaimed that off-lease volume will be on par with new-vehicle sales throughout 2014 before surpassing sales the following year and into 2016, forecasting over 3 million new leases signed in that year alone:
If you consider that new vehicles are increasingly being bought by high-income households that do, in fact, want to trade on a regular cycle, then they should be in a lease, not a retail contract.
Webb added that since residual risk "always has to reside somewhere," the perfect place for such risk would be none other than the lessor "who has a portfolio of vehicles and hopefully also has a professional remarketing arm."
Speaking of remarketing, Webb says the certified pre-owned market is in good health, with sales of CPO vehicles outpacing the off-lease market for the third consecutive year in 2014, with the latter providing the foundation stones for the former.
from The Truth About Cars http://ift.tt/Jh8LjA
Put the internet to work for you.
No comments:
Post a Comment