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Off-Lease Vehicles Boost Used-Car Prices

Stricter leasing terms are propping up the used-vehicle market, according to Edmunds’ first-quarter Used Vehicle Report. Average used-vehicle prices hit a record-breaking high of $20,247, compared with $19,700 in the same prior-year period. Edmunds’ research attributes the increase partially to “the return [to market] of a record volume of vehicles leased in 2016,” the report […]

Influx of Off-Lease SUVs Applies ‘Downward Pressure’ on Residual Values

Amid the growing popularity of SUVs, an influx of off-lease vehicles returning to the market could impair residual values, David Paris, supervisor of market intelligence at JD Power, told Auto Finance News. So far this year, off-lease volume has increased 7.7% year over year, according to JD Power data. “We’re anticipating used supply to peak […]

Used-Vehicle Depreciation Forecasted for Spring 2019

Used-vehicle values are likely to depreciate 15% by yearend, compared with the 12.4% total depreciation seen in 2018, Black Book's Executive Vice President of Operations, Anil Goyal, told Auto Finance News. “We had a great year last year in terms of used vehicle value retention, and it’s highly unlikely it’ll repeat itself this year,” Goyal […]

Auto Finance Risk Summit to Examine Top Strategies for Risk Management

The auto finance market today has thrown a curveball at lenders with rising interest rates, slipping new-vehicle sales, uncertain regulations, and mounting dealership fraud. The 12th annual Auto Finance Risk Summit will delve into these issues and others of top concern for lenders. Auto Finance Risk Summit participants will gain insights on fraud risk, learn […]

Used-Car Values: How Lenders Manage Unexpected Appreciation

Roughly two years ago, the automotive market and the economy were heading for a peak year where lenders were aggressive, competition was stiff, and the economic environment was gaining strength. Since then, lenders have taken their foot off the gas, the economy has stabilized, and lenders have operated business as usual — while used-car values […]

Residual Values Are Risk Factor in BMW Financial’s First Auto Lease ABS of 2018

BMW Financial Services of North America issued its first U.S. auto lease ABS of 2018 backed by a pool of outstanding lease receivables totaling $1.16 billion, according to presale reports. The new securitization is comprised of 33,670 prime auto lease receivables with an average FICO score of 789 and maximum lease term of 36 months, according […]