It’s news that may not appeal to automakers, dealerships or anyone looking to sell a vehicle, but if one well-respected analyst is correct, we’re on the cusp of an awesome buyer’s market for used vehicles that could present the perfect opportunity to get into a car or truck on your wish list.
Morgan Stanley equity analyst Adam Jonas is predicting that used-car prices will fall 25-50 percent over the next four to five years due to a handful of market conditions ranging from a flooded market to technology obsolescence to financially stressed auto consumers.
There “are ingredients for an unprecedented buyer’s strike,” Jonas said in this CNBC report.
Emerging automated vehicle technology advancements are also being cited as a major price influencer.
“Expectations of a rapid ramp-up in automated driving technology such as Automatic Emergency Braking should change the desirability, insurability and useful life of the $2 trillion worth of used cars in the U.S.,” the CNBC story said.
So, the cost of insuring one of our discount-priced cars may be on the rise and try to rain on our parade. But aren’t the cars we really want to drive already expensive to insure?
Sure they are.
#WorthIt
Latest isn’t always the greatest. If anything, automatic braking features will give drivers an excuse to pay even less attention than they do now.
I agree totally. When switching to other vehicles I always reorient myself.
It is logical that if we are crashing less often because our cars are paying better attention to what is going on around us than we ever did, that our insurance premiums would go down. Anyone want to bet that doesn’t happen? I have all the faith that our insurance companies will find a way to keep pulling in the same cash.
This new technology will come at a greater initial cost (+ greater cost of repair) and decrease long term reliability. Most Financially stressed consumers that I know do not purchase new cars. Auto breaking technology changing the market in 5 years is over rated. 15 years – maybe.
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