Used Crossovers And Trucks Are Flooding The Market As 3.9 Million Vehicles Come Off-Lease

Crossovers and trucks remain popular with consumers and that has limited their depreciation when they hit the used the market. Thankfully, prices are dropping as Wards Auto reports there is a “tsunami” of off-lease vehicles hitting the market this year.

According to the publication, 3.9 million vehicles will have their leases end in 2018 and many of them are highly sought-after crossovers, trucks and SUVs. This is due to a combination of factors as the United States has experienced years of record vehicles sales and the crossover craze didn’t kick into high gear until a few years ago. Now, it’s a dominate trend as crossovers, trucks and SUVs are outselling traditional cars by nearly two-to-one.

 

 

This is bad news for dealers trying to sell brand-new models, but it’s a great opportunity for buyers looking for a deal. As Cox Automotive’s manager of economics and industry insights, Zohaib Rahim, explained “If you can buy a three-year-old CUV that’s $10,000 to $15,000 less than a comparable new CUV, that’s attractive to a lot of shoppers.”

The trend is expected to continue for at least two more years as Rahim says there will be approximately 4.1 million off-lease vehicles hitting the market in 2019 and another 3.9 million in 2020. This is good news for buyers as the average new vehicle loan recently hit a record of $31,455 in the United States. This means consumers are making average monthly loan payments of $523.

Given the rising prices of new vehicles, it’s no surprise that many consumers are looking for more affordable options. This used to mean settling for a car, as there were more on the second-hand market, but the flood of crossovers, trucks and SUVs means consumers now have more choices.

 

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