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      09-09-2019, 01:45 PM   #49
IK6SPEED
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Drives: BMW M3 / AH3
Join Date: Jan 2013
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Quote:
Originally Posted by CLABRO View Post
Yeah, the leases aren't as good as they used to be, but it shouldn't be too shocking. The average cost of a new car has skyrocketed across all manufacturers thus lease prices inevitably have to increase as well.

Last I checked, the average new car price was something around $38,xxx. The average new BMW price was something around $56,xxx. Average cost is at an all time high and will most likely continue to increase for some time.

Used car market is going to continue to explode as it already has been. The average car age on the road is like 12 years old which only continues to get older. Quality and reliability has improved throughout all manufacturers so more cars are lasting longer and more people are driving these cars longer. Factor that with the new car average price hitting all time highs (many people/families cannot afford these cars, but that's another topic) so people look to CPO and pre-owned and you have an exploding used car market and a stagnate or decline in new car sale volume.
As new car sales are imploding, that has an effect on the used car market (and prices).

Less new cars in the pipeline means fewer cars to enter the used market.

They go hand in hand, not in inverse.

You are also assuming USA has not hit peak car ownership which rest of World hit over past 24 months or so and it seems USA hit in 2018.

Thus not all current cars will be replaced as Uber and Lyft have taken hold, becoming more mainstream.
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