What?s to be done with all the used cars and trucks" The question was at the forefront of the 2017 National Automobile Dealers Association convention in New Orleans. Of concern for car and truck dealers is the glut of vehicles coming off leases this year, which will inevitably drive down prices for used vehicles. Their loss could be used-car buyers? gain.
?I think from [the automaker?s] perspective, that’s bad news,? Toyota Motor North America CEO Jim Lentz said at a roundtable with journalists Sunday. “From the consumer?s perspective, it’s pretty good news. There are going to be some great deals out there on certified used passenger cars.?
The key word there is ?certified.? Dealers and manufacturers alike are poised to woo customers toward certified pre-owned vehicles, or CPOs, which have low mileage and come with a manufacturer-backed inspection, a warranty, and other perks. The push makes sense, as most cars and trucks coming off leases will be newer, and CPOs typically cannot be more than five or six years old. The supply of used vehicles up to five years in age on the market already grew by 13 percent in 2016, led by a 33 percent rise in off-lease maturities, according to data from the research firm J.D. Power, which was shown during a session at the NADA convention. Another 6 percent increase in used-vehicle volume is forecast for this year. For car and truck shoppers, that growth in volume points toward a buyer?s market for used vehicles. On t...