Continued competition from sales of relatively affordable new vehicles and a growing wholesale market supply will pressure used vehicle prices, Fitch Ratings said Tuesday.
Fitch said the trend is a return to more “reasonable values,” from higher ones.
Prices of used vehicles rose in the years after the Great Recession, as drivers held onto the vehicles longer instead of buying new ones and automakers cut back on leasing, reducing the supply of available used cars and trucks. More recently, auto sales and leasing have picked up. That’s increased the supply of used cars and helped ease prices. The credit-ratings firm expects that trend to continue as new car sales rise.