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Used car value depreciation rises again

Published 08/21/2017, 12:33 PM
Updated 08/21/2017, 12:33 PM
© Reuters.  Used car value depreciation rises again
  • The average used car lost 17% of its value year-over-year to $15.3K, according to Black Book. That's nearly double the rate of depreciation seen in 2014.
  • Blame seven straight years of rising U.S. car sales for glutting the secondary market. There's also been an increasing share of leases, meaning more cars coming back on market when those three-year contracts expire.
  • Unsurprisingly, KAR Auction Services - which sells about 5M used cars per year - is seeing a rising number of repossessions, expecting nearly 2M this year vs. 1.1M at the top of the last recession.
  • Interested auto lenders: Santander (MC:SAN) Consumer (NYSE:SC), Ally Financial (NYSE:ALLY), Capital One (NYSE:COF), Credit Acceptance (NASDAQ:CACC)
  • Now read: Credit Acceptance Corp.: Finding A Niche And Owning It

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