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INDUSTRY INSIGHT

Experts See Challenges, but No Crisis in

Used-Car Market

BY JOHN IRWIN

Here's what most experts anticipate in the But most experts in the used-vehicle arena more people were looking for work. At the
used-vehicle market over the remainder scoff at such comparisons. While the indus- same time, the Consumer Confidence In-
of the year and into 2018: retention values try, including the used-vehicle market, fac- dex rose to 118.9 in June, its best reading in
dragged down by returning inventory and es some significant challenges, they say, the more than 15 years.
high new-vehicle incentives, a problem market has thus far proved to be relatively
compounded by lenders further cutting resilient. They say a major collapse seems "That creates a foundation for most house-
back on subprime lending as delinquencies unlikely, even as the U.S. auto market de- holds to be more confident, to be doing bet-
rise. clines. ter financially," said Jonathan Smoke, chief
economist for Cox Automotive. "It puts [ve-
There are enough negative trends in the Supporting their relative optimism are sev- hicle] demand on strong fundamentals. For
marketplace that it occasionally draws eral factors, primarily the strength of the us to see a shakier situation on the demand
comparisons from some observers to the U.S. economy. The unemployment rate side, we would have to see deterioration ei-
housing market just before the mortgage stood at 4.4 percent in June, up slightly from ther in the economy or in credit conditions,
crisis that triggered the Great Recession. a 16-year low of 4.3 percent in May because neither of which we're seeing." n

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