Off-Lease Vehicles Pressured Used Vehicle Prices: BAML

The level of off-lease vehicles is steadily increasing, which has placed downward pressure on used vehicle prices, though several factors should be supportive of prices, believe BAML analysts. Chris Flangan and colleagues said in their April 15 research note titled “The car to watch is off lease” that they are not looking for vehicle prices to plunge, though the risk seems to be to the downside. Off-lease vehicles: steady increase in lease financing for new vehicles The BAML analysts point out that the level of lease financing for new vehicles has been steadily increasing since 2009 and nearing the level witnessed in…