Prior to Hurricanes Harvey and Irma, the used-car market was softening. From 2014 to 2016, car leases were a booming business, with more than 12 million lease agreements inked during that time frame. Those were prosperous days for car dealers and lenders.
Unfortunately, with most economic cycles, when there’s a boom, there’s a bust. The bust started in 2017 with an estimated 3.5 million leased cars projected to enter the used-car market during the year. This created oversupply and put downward pressure on prices — especially for used sedans as consumer tastes shifted toward SUVs and trucks. The used-car market was a buyer’s market.
Then, within the span of four weeks, everything changed.
