Davin News Server

Alan wrote:
> 
> New car sales are down because cars are lasting far, FAR longer than 
> they used to.

Try again, liar:

https://finance.yahoo.com/news/used-car-prices-fall-again-in-april-down-nearly-17-from-pandemic-highs-162758735.html

Kelley Blue Book estimates Americans purchased 35.9 million used 
vehicles last year from dealers and private parties, just below 2022’s 
36.3 million. Used vehicle purchases more than doubled new retail sales 
last year, which KBB estimates hit 15 million vehicles.

Manheim also noted weakness in the EV market in April, where automakers 
like Tesla (TSLA) are cutting retail prices, hurting prices paid in the 
used market.

The firm noted that seasonally adjusted EV values last month were down 
17.5% from the prior year. For non-EV cars, prices fell 13.1%.

Still, KBB wrote in a report last week that lower prices aren't expected 
to boost auto sales figures, which have held steady in recent months.

Data from the Bureau of Economic Analysis showed that in April, car and 
light truck sales came in at an annualized rate of 15.7 million 
vehicles, down modestly from a peak rate of 16.1 million in December. In 
the years before the pandemic, auto sales tended to float between an 
annualized rate of 17 and 18 million vehicles.

"The Conference Board Consumer Confidence Index declined 5.9% in April, 
as views of both the present economic situation and the near future 
declined. Consumer confidence was down 6.5% year over year. Plans to 
purchase a vehicle in the next six months declined from last month but 
remained higher than a year ago.”

https://money.com/used-car-prices-decline-prediction/

Experts predict that used car prices could decline by as much as 14% as 
the market recovers from supply disruption issues that sent costs soaring.

A new report from CarGurus states that used and new vehicle prices will 
likely moderate this year and for the next several years. According to 
the online vehicle marketplace, there's a lot of room for prices to fall 
if vehicle inventory returns to normal volumes, as expected.

Why used car prices are falling

Used vehicle prices are falling in part because high auto loan rates are 
scaring away potential buyers.

In a separate report on Friday, Jonathan Smoke, chief economist at Cox 
Automotive, said that “demand is tepid at best, as shoppers just don’t 
have any urgency to buy in the current economic environment.”

The average auto loan interest rate for used vehicle purchases was 11.9% 
at the end of 2023, up from 10.4% a year earlier, according to Experian.

Also, the used market had been competitive for years because there was 
such a lack of supply of new vehicles. Now that new vehicle supply has 
bounced back, more buyers are shopping in that market again. Roberts 
says the effect is reduced competition for used vehicles.