New-vehicle leases are reaching record heights, however, a result of this will be that vehicles will be entering the used-car market sooner than purchased vehicles that are sold. The average age for new cars sold in Canada is now over 10 years old, and as such, it makes sense to look at how long these used cars can last before they need replacement. The report tracks leasing because those vehicles enter the used-car market sooner than vehicles that are sold, due to lengthening new-vehicle loans. That pool of vehicles is expected to grow to almost 3.6m in 2017 and 4m in 2018 which will put huge pressure on the used-vehicle prices, and it is possible that residual value losses will widen. On another note, new data in the UK has alerted its concerns on the swelling number of unpaid financed cars on the road as it is bringing increased risks of buying a used car with "thousands of pounds of debt attached to it"; it reveals a 16% rise in the number of unpaid finance alerts on used cars. New data by the Finance & Leasing Association says 8 out of 10 new cars are now acquired through finance deals in the UK as 2015 saw an increase of 10% of new car finance volumes compared to 2014.
New-vehicle leases are reaching record heights, however, a result of this will be that vehicles will be entering the used-car market sooner than purchased vehicles that are sold. The average age for new cars sold in Canada is now over 10 years old, and as such, it makes sense to look at how long these used cars can last before they need replacement. That pool of vehicles is expected to grow to almost 3.6m in 2017 and 4m in 2018 which will put huge pressure on the used-vehicle prices, and it is possible that residual value losses will widen. On another note, new data in the UK has alerted its concerns on the swelling number of unpaid financed cars on the road as it is bringing increased risks of buying a used car with "thousands of pounds of debt attached to it"; it reveals a 16% rise in the number of unpaid finance alerts on used cars. New data by the Finance & Leasing Association says 8 out of 10 new cars are now acquired through finance deals in the UK as 2015 saw an increase of 10% of new car finance volumes compared to 2014.