U.S. residuals predicted to drop 4.2 percentage points, Black Book says

Black Book predicts a drop of 4.2 percentage points in used-vehicle residual values over the next three years.New cars and trucks sold in the U.S. in May and June will retain about 47.8 percent of their sticker prices, down from the current 52 percent value for 3-year-old vehicles.Strong credit availability, increased demand for new vehicles and low gas prices contributed to five years of high residual value retention rates, which peaked in 2013 at 54.5 percent.U.S. light-vehicle sales have grown for six straight years, including a record 17.5 million units sold in 2015. Sales grew another 3.3 percent during the first four months of this year to 5.6 million vehicles.But with so many new cars and trucks on the road, the increased supply of used vehicles in future years will depress prices, Black Book said.Despite the industrys continued efforts to maintain a strong pace of sales on new cars and trucks, the increased level of supply in the used market has begun to weaken prices on both cars and trucks, Anil Goyal, Black Books senior vice president of automotive valuation and analytics, said in a statement Monday.Goyal also said the depreciation of cars was above average in 2015, and he expects trucks to follow that trend in 2016. href='http://feedproxy.google.com/~r/autonews/UsedVehiclesNews/~3/UU42AHsQGDI/u-s-residuals-predicted-to-drop-4-2-percentage-points-black-book-says' - http://feedproxy.google.com/~r/autonews/UsedVehiclesNews/~3/UU42AHsQGDI/u-s-residuals-predicted-to-drop-4-2-percentage-points-black-book-says -