Surge in End-of-Lease Cars Seen Pressuring Prices in Record Year
- U.S. light-vehicle sales projected to accelerate from January
- Additional 800,000 off-lease vehicles will boost used sales
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A surge in cars and SUVs coming out of leases have analysts predicting pressure on prices of both used and new models, curbing investor enthusiasm over sales records projected for this year.
Increased availability of of two- and three-year-old models with modern safety and technological features should pull used-car prices down from record highs and provide more competition for new vehicles. More than 3 million autos will reach the end of their leases this year, a 35 percent jump from last year, according to the NADA Used Car Guide, which uses data from J.D. Power’s Power Information Network. It’s the most off-lease vehicles since 2003, according to Manheim Consulting.