Will Anticipated Off-Lease Hyundai Vehicles Cause a Problem?
After the Great Recession hit nearly a decade ago, most people began buying used cars instead of new cars. As the volume of used cars depleted rapidly and prices increased over the following years, a lot of people began leasing new cars instead of purchasing them.
Now, many automakers are anticipating a wave of vehicles to come off leases and return to dealerships. One brand which anticipates being affected by this is Hyundai. According to the automaker’s US CEO, Dave Zuchowski, when questioned by Automotive News about the impending off-lease Hyundai vehicles, he admitted, “We’ve seen this coming for three years.”
Many Off-Lease Hyundai Vehicles on the Way!
The auto industry as a whole is preparing for a dramatic amount of off-lease vehicles to be returning to dealership lots due to the heavy amount of leasing by customers this decade. This is especially true of Hyundai, whose sales numbers have been rocketing the past years as well. That adds up to plenty of Hyundais coming off lease.
Trends clearly suggest that Hyundai will be facing a wave of off-lease vehicles. According to estimates from Zuchowski, the automaker had 40,000 vehicles come off lease in 2013–a number that more than doubled in 2014 to 90,000 vehicles. Estimates for 2015 exceed 110,000.
Plenty of other higher-priced automakers are used to a high turnaround rate on their leased vehicles, but some analysts aren’t sure how this will affect the Korean automaker, and how its US branch will absorb the influx.
From our perspective, Hyundai should have no problem in this area. Last year, Hyundai used vehicle sales rose 26% to 95,486. The automaker has a decent certified used-vehicle program, and its already-low prices on vehicles will undoubtedly attract customers who have recovered from the recession.
News Source: Automotive News