AutoRemarketing,
August 31, 2005
"RVI: U.S. Leasing on Rise, Canadian
Used Market Suffering Oversupply"
STAMFORD, Conn. (Aug. 31, 2005 -- Recovery in used vehicle
prices has been driving higher lease penetration rates
in the U.S. marketplace this year, according to Rene Abdalah,
of The RVI Group.
He explained that finance companies are making it more
attractive for consumers to lease. In the near-term,
finance companies have been offering relatively higher
interest rates with shorter-term lengths on auto loans.
While at the same time, monthly payments on leases have
been extremely low. As a result, lease penetration rates
during the first quarter have been notably higher than
they were during 2004, Abdalah explained.
Meanwhile, up in the Canadian marketplace, an abundance
of new vehicle sales in 2002 has caused an oversupply
of used vehicles in 2005, which stands 9 percent above
year-ago levels and rising.
For more information from The RVI Group on U.S. leasing
and the Canadian used vehicle market, please see "RVI:
U.S. Leasing on the Rise, Canadian Used Vehicle Market
Suffering Oversupply," in the Sept. 1-14 edition
of Auto Remarketing NewsMagazine.
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