👀 Ones to watch: The MOST undervalued stocks to buy right nowSee Undervalued Stocks

Used car value depreciation rises again

Published 08/21/2017, 12:33 PM
© Reuters.  Used car value depreciation rises again
SAN
-
COF
-
CACC
-
SC
-
ALLY
-
  • The average used car lost 17% of its value year-over-year to $15.3K, according to Black Book. That's nearly double the rate of depreciation seen in 2014.
  • Blame seven straight years of rising U.S. car sales for glutting the secondary market. There's also been an increasing share of leases, meaning more cars coming back on market when those three-year contracts expire.
  • Unsurprisingly, KAR Auction Services - which sells about 5M used cars per year - is seeing a rising number of repossessions, expecting nearly 2M this year vs. 1.1M at the top of the last recession.
  • Interested auto lenders: Santander (MC:SAN) Consumer (NYSE:SC), Ally Financial (NYSE:ALLY), Capital One (NYSE:COF), Credit Acceptance (NASDAQ:CACC)
  • Now read: Credit Acceptance Corp.: Finding A Niche And Owning It

Original article

Latest comments

Risk Disclosure: Trading in financial instruments and/or cryptocurrencies involves high risks including the risk of losing some, or all, of your investment amount, and may not be suitable for all investors. Prices of cryptocurrencies are extremely volatile and may be affected by external factors such as financial, regulatory or political events. Trading on margin increases the financial risks.
Before deciding to trade in financial instrument or cryptocurrencies you should be fully informed of the risks and costs associated with trading the financial markets, carefully consider your investment objectives, level of experience, and risk appetite, and seek professional advice where needed.
Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. The data and prices on the website are not necessarily provided by any market or exchange, but may be provided by market makers, and so prices may not be accurate and may differ from the actual price at any given market, meaning prices are indicative and not appropriate for trading purposes. Fusion Media and any provider of the data contained in this website will not accept liability for any loss or damage as a result of your trading, or your reliance on the information contained within this website.
It is prohibited to use, store, reproduce, display, modify, transmit or distribute the data contained in this website without the explicit prior written permission of Fusion Media and/or the data provider. All intellectual property rights are reserved by the providers and/or the exchange providing the data contained in this website.
Fusion Media may be compensated by the advertisers that appear on the website, based on your interaction with the advertisements or advertisers.
© 2007-2024 - Fusion Media Limited. All Rights Reserved.