By MJ Majuru
TransUnion says its latest Vehicle Pricing Index “should be music to the ears of consumers who’ve been itching to buy a new vehicle”.
The organisation adds: “However, consumers are still concerned if they’ll be able to meet their debt repayments, and as a result, are holding back on replacing their existing vehicles.”
The VPI report examines the link between the year-on-year increase in vehicle pricing for new and used vehicles, drawing data from a basket of passenger vehicles incorporated from the top 15 volume manufacturers.
Data is collected from across the industry and used to create the VPI.
TransUnion’s Q2 2017 report shows that the VPI for new passenger vehicles has decreased from 8.4% in Q2 2016 to 5.4% in Q2 2017, while the VPI for used vehicles increased from 2.7% to 3.6% over the same period.
These results, says TransUnion, suggest that used vehicles aren’t necessarily “as affordable as they were a year ago, while buying new vehicles is becoming easier and more reasonably priced”.
Derick de Vries, CEO of Auto Information Solutions at TransUnion, said: “In part, the increasing affordability of new vehicles and the corresponding rise of prices in the used market can be explained by the cyclical nature of the industry.
“Availability of quality used vehicles fluctuates often, and with it, their prices. In times when used vehicles are in high demand and short supply – as we currently appear to be experiencing – the option of purchasing a new vehicle instead can often amount to a better deal for the buyer.”