Art Spinella
President
CNW Research
CNW Research says that the boom in new vehicle leasing is causing automakers to overvalue future residual values 5% to 10% to get monthly payments lower and beat out the competition; Dealers and OEMs will still see some gains from leasing boom – certified pre-owned (CPO) vehicles are coming from certifiable used cars at end of term; CPOs are the most desired UVs on market and are seeing sales grow dramatically.
Here’s the latest Retail Automotive Summary market report
Tepid UV Sales Volume in October Partially Comes from Fed Shutdown:
Nearly 500K fed-owned vehicles were slated for sale but postponed until re-opening.
Private-Party Sales Doing Very Well with 18% Volume Gain this Month:
Franchised dealers seeing slight gain at 0.4% and Independents down 7.7%.
September Saw Nearly 107K UVs Leased – 4.5% Over Year Ago:
Typical used vehicle lease is near-luxury and luxury segments including high-end SUVs.
