ALG Report: Used Market Supply Outlook on the Rise; Current Incentives Up

car dealership (select to view enlarged photo)

Upward trend in U.S. used car supply continues to affect values

SANTA BARBARA, CA--July 3, 2013: Residual values for automobiles are changing little edition-over-edition, according to the latest ALG Industry Report, but the outlook on used market supply has increased, which may lead to lower values in the future. The ALG Industry Report, which summarizes the forecasted residual values for automobiles by providing a look at factors impacting vehicle valuations over the next 36 months, is now available to the automotive and financial services industry.

The ALG Industry Report details a rise in new vehicle supply in two vehicle segments, Midsize and Compact cars, which result from numerous redesigns that have occurred. With current incentive levels rising around $200 in the industry overall versus the previous edition, this data could portend a drop in future values for those segments.

"Historically, when we have seen supply increase in specific segments, it puts downward pressure on residual values," said Eric Lyman, ALG vice president of editorial. "This is something we're watching closely, as today's sales battles typically contribute to lower prices and values."

The Industry Report includes a macro look at the U.S. economy and factors that can impact vehicle pricing – including gasoline prices, durable goods spending and used car inventories. Other measures of the nation's economic health are considered, including job reports, consumer confidence and unique or one-time factors, the impact of which may affect used vehicle values moving forward.

The next edition of the Industry Report will be available during the first week of September. To obtain a copy of the ALG Industry Report, or for more information about ALG and its products, visit ALG .

Home | Buyers Guides For Every Auto Make | New Car Buyers Guide | Used Car Super Search | Total New Car Costs | 2016-1993 Car Reviews Truck Reviews
1996-2016 Automotive News | TACH-TV | Media Library | Discount Auto Parts

Copyright © 1996-2016 The Auto Channel. Contact Information, Credits, and Terms of Use. These following titles and media identification are Trademarks owned by The Auto Channel, LLC and have been in continuous use since 1987 : The Auto Channel, Auto Channel and TACH all have been in continuous use world wide since 1987, in Print, TV, Radio, Home Video, Newsletters, On-line, and other interactive media; all rights are reserved and infringement will be acted upon with force.

Privacy Statement | Size Does Matter | Media Kit | XML SITE MAP | Affiliates

Send your questions, comments, and suggestions to

Submit Company releases or Product News stories to
Place copy in body of email, NO attachments please.

To report errors and other problems with this page, please use this form.

Link to this page: