All auto lenders should consider sharing this short video with your dealer base. This will go viral…just watch. We all grew up hearing about the suspect integrity of car salesmen and women. The truth is (at least to me) everyone I’ve ever met that worked at a dealership had impeccable character, were motivated mostly because they wanted to provide for their family, were knowledgable, professional, and simply nice. I hope you enjoy this as much as I did.
Chas Roscow
To Daniel’s point, barring skyrocketing gas prices like we saw in mid-2008, I would imagine that lenders would have at least some amount of warning that used-vehicle values are starting to drop. For now, though, the Manheim Index shows that auction prices have been solidly high (in about the 115 range) since mid-2009.
Separate question: Are lenders reducing the amount spent on reconditioning because used cars are fetching such high prices anyway?