New Vehicle Sales May Fall Due To Crossovers And SUV’s Lease Terms Ending
Vehicle sales are often studied by analysts because a great deal of information can be gleaned from its results. Recently, it has been estimated that new vehicles may begin to see lower sales. The reasons for this assumption include but are not limited to the following reasons:
- More SUV’s Coming Off Lease
- Prices Have Remained High
- Greater Value In Used Vehicles
More SUV’s Coming Off Lease
Currently, many SUV’s and Crossovers are ending their three year leases than there have been in previous years. This means that the supply of these types of vehicle will be higher than normal thus driving down the price for a used car over time.
Prices Have Remained High
One vehicle that is expected to be affected immediately are new lightweight trucks. This is because their prices have remained higher than the average new vehicle on the market. Because of this, many drivers may look to a far cheaper SUV to meet their needs instead.
Greater Value In Used Vehicles
Vehicles depreciate in value faster than many other commodities. For this reason, it is not always in a car owners best interest to buy a brand new vehicle. Instead they are looking for a much cheaper vehicle that is only a few years old.
This perfect storm of event could end up leading to much higher sales of used SUV’s and Crossovers than normal in the near future. Only time will tell what the results truly are.