The Ford Mustang and Ford F-150 have been a great success for Ford but it looks like the carmaker might eventually regret enjoying such huge sales success in the future.
This is down to the fact that Ford has sold so many vehicles that the prices of used cars could drop steeply. 2016 was one of the best years for the carmaker, along with others and this meant boosting production numbers. Now demand has slackened off and this means they are stuck with an oversupply along with idling factories.
The huge numbers of vehicles that carmakers have been sending out over the last couple of years are now entering the used car market and prices have been driven down. Along with this around 3.36 million cars and trucks that have been leased are going to be returned this year. They will then be sold as preowned vehicles and this is going to hit car makers financially.
Used car prices are going down and this means that lenders may also lose out by millions as the vehicles that are being returned are now less valuable than what was thought. The Ford Motor Company financial services have cut $300 million from the profit forecast for 2017.
Ford is showing the first signs of loss and it is thought that FCA and GM will also be hit too by vehicle valuations being lower than expected. However for buyers of used cars this is good news as it means they stand a better chance of getting a vehicle that was once out of their reach price wise.