Healthy U.S. Auto Market, Despite Soft Used Car Prices - Seite 2

U.S. vehicle demand continues to strengthen in both the new and pre-owned auto market. New vehicle purchases have climbed 3% so far this year, and used vehicle demand has advanced 6% y/y though March, only marginally below the gains of recent years. While the number of vehicles coming off-lease will increase over the next few years, the expansion is modest by historical standards, and represents only a 1% per annum increase in the number of total used vehicles for sale in the United States. Furthermore, the increase in the supply of pre-owned models is occurring in an environment of favourable vehicle affordability, rising incomes and demand, as well as low interest rates. All of these factors will facilitate the absorption of these models into the market even with the Federal Reserve continuing to gradually normalize short-term interest rates.

Other highlights from the report include:

• Western Europe continues to outperform alongside an improving labour market. In contrast, double-digit declines continue in Brazil and Russia. However, there are tentative signs that a bottom may have been reached in Russia. In March, the slide in Russian car sales lessened to only 10% y/y, the smallest decline since late 2014.
  
• Credit availability remains favourable in the United States, with the number of auto loan delinquencies and vehicle repossessions at low levels.

Read the full Scotiabank Global Auto Report online at: http://www.scotiabank.com/ca/en/0,,3112,00.html.

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