Resale value for GM and Ford vehicles to rise

Excellent news for owners of GM and Ford cars: resale values will most rise soon because the companies reduced their production and don’t outpace the market’s demand now. GM and Ford have been rallying behind traditional leaders Toyota and Honda, and may be in the positions to offer better lease deals based on the resale values of their cars.

Latest calculation suggest that the 2 manufacturers will have their vehicles from ’10 onward to retain about 40% of their value after 36 months. Cadillac was the only brand from these manufactures expected to do so five years ago.

GM and Ford have reduced their production in order to keep the factories going and now they spend less on incentives, which made possible a price reduction of a few hundred dollars. Historically the companies would overproduce and then rely on rental fleets to absorb the excess inventory; a practice which has also ceased.

via Automotive News (subscription required)

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