Used car sales climbed to an all-time high of 39.2 million vehicles in 2017, according to a new Used Car Report released today by Edmunds, the leading car shopping and information platform.
The 2017 market activity reflects a 1.6 percent increase in sales from 2016, and a 4.3 percent increase from 2012. According to analysts at Edmunds, the spike represents increased replacement demand due to Hurricanes Harvey and Irma, as well as increased used vehicle inventory due to a glut of off-lease vehicles hitting the used market in 2017.
Consumer demand for SUVs, which were limited in supply, is what helped fuel price growth in the used market, says Ivan Drury, senior manager of industry analysis at Edmunds. “Shoppers looking for better deals on newer used vehicles will likely find them on 2- to 3-year-old passenger cars, since their residual values were hit so hard by this trend,” he says.
According to Edmunds, leasing new vehicles could cost more in the coming year.
“Looking forward, we expect to see leasing become more expensive as interest rates climb and residuals continue to fall,” Drury says. “However, rental sales are at risk of slowing as more consumers gravitate toward ride-hailing services and peer-to-peer car sharing.”
For more insights on the latest trends in the used car market, read the complete report in the Edmunds Industry Center.