(August 11, 2011) IRVINE, Calif. (PRNewswire) — Kelley Blue Book kbb.com predicts that the new-car sales and leasing slumps of recent years will impact used-car values for years to come

Current supply reductions, caused by the decline in new-car sales since 2008 and the drop in leasing throughout 2008, will play a very prominent role in the wholesale used-car market for years to come, as covered in the company's recently released Blue Book Market Report for August 2011.

In response to supply reductions, the average value of a one- to three-year-old used vehicle has increased from $15,000 in 2008 to more than $23,000 in 2011, an average increase of nearly 16 percent each year. It will take several years of strong new-car sales to replenish the shortage of used vehicles driving values up today.

"While the pace of used-car appreciation is likely to subside as supply, and ultimately sales, improve, we expect used-vehicle values to remain strong for the next two to three years," said Alec Gutierrez, manager of vehicle valuation for Kelley Blue Book.

"While depreciation typically affects a vehicle's value most in the first two years of ownership, it will not be as pronounced as it would have been a few years ago when the used-car supply was still very high. Consumers who plan to sell or trade-in a used car soon will likely see their vehicle hold its value well.

"Alternatively, shoppers in the market for a used car will continue to pay more, making it difficult to buy at a discount."

Kelley Blue Book updates its vehicle values weekly to reflect the latest in changing market conditions.

The monthly Blue Book Market Report explores the state of the automotive industry by analyzing Kelley Blue Book Wholesale Lending Values. The report also discusses developments in residual values and trends in monthly used-car shopper activity on www.kbb.com.