U.S. lease penetration to remain at historical high through 2020
Lease penetration in the U.S. will remain at a “historical high” from now through to 2020. That is one prediction from the latest Risk Outlook report, released by RVI Group, a specialist in residual value insurance.
Also, as off-lease vehicles re-enter the market in increasing numbers, used-car prices are expected to decline by 12.5% from current levels by 2020, RVI Group says.
In their first-quarter report, they show a decline of 6.4% in used-car prices for this February compared to the previous one, and a decline of 2.5% compared to January. Prices in the relatively small SUV segment fell by 5.9% year on year, performing better than the market average.
U.S. new-vehicle sales did fall slightly in February, down from 17.6 million in January to 17.5 million. Year on year, February sales were down 0.8%. Lease penetration in overall new-vehicle sales stood at 22.7% for the fourth quarter of last year, slightly down from 22.8% in the third quarter.
As for major background trends, the report notes that U.S. economic growth remains steady, despite a decline from an annual rate of 3.5% in the third quarter to 1.9% in the fourth; and that unemployment dropped from 4.8% in January to 4.7% in February.
For more data, see the RVI Risk Outlook newsletter here
Image: public domain
| 30/03/2017 | Frank Jacobs