Used Vehicle Market Similar to Playground Slide?
Wholesale and used vehicle retail prices have been on a tear since the beginning of 2021, but will this trend continue through the end of the year and beyond? J.D. Power and ALG experts share insights regarding macro trends and several factors that could cool the market as new agitators are relieved such as overheating to compounding supply and demand during the next Valuation Services’ “Golden Age of Used Vehicles Podcast” episode.
David Paris, Senior Manager of Market Insights with J.D. Power Valuation Services and Morgan Hansen, Vice President of Data Science with ALG a Division of J.D. Power, join Jack Nerad, automotive author, journalist, radio host, North American Car of the Year Vice President and Motor Press Guild President to kick off the series with the fourth episode, “What does the future of wholesale and used car marketplace look like?”
“The current state is remarkably strong…However, due to unforeseen market disruptions on the new (car) side of the industry and numerous supply chain related production challenges, used (car) prices just really quickly increased as dealers and consumers alike leaned on this channel of the industry to fill the gaps.” – David Paris, Senior Manager of Market Insights with J.D. Power Valuation Services
“I’ve likened it to a slide on the playground. We’ve climbed the ladder in the spring and now we’re on the slide. We’re kind of on our downward trajectory. It might be fun for some and scary for others. But we’re on it. We expect values to be down maybe 5 to 6% of MSRP, but not the 15-18% of the rise we saw this spring.” – Morgan Hansen, Vice President of Data Science with ALG a Division of J.D. Power .
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