NEW ORLEANS – With labor market and credit conditions continuing to improve and expected to maintain an upward trajectory in the year ahead, the environment is ripe for sustained vitality in the new, used and wholesale marketplaces.
These and other trends are explored in detail in Manheim’s 19th annual Used Car Market Report, unveiled today by Manheim chief economist Tom Webb at the National Automobile Dealers Association convention.
Looking ahead, Webb said 2014 will reveal “the next evolution of the wholesale marketplace,” as declining margins, increasing wholesale volumes and rising market pressures will require new tools and strategies. For auction participants, this means the ongoing adoption of technologies that allow them to buy and sell vehicles through online platforms that provide simultaneous, multi-platform buying and selling opportunities.
In an introductory letter in the report, Manheim President Sandy Schwartz said the transformation of the remarketing industry is something the company embraces, pointing to the innovative new services offered by the company to facilitate the buying and selling process. “In the face of these changes, our goal at Manheim is to provide a trusted marketplace for buyers and sellers, enabling wholesale participants to appraise, finance, buy, sell, manage and transport inventory in the most efficient ways possible.”
The 42-page report, co-written by Manheim Consulting Director Scott Hatmaker, examines data and trends in all sectors of the used car marketplace, including chapters on dealers, rental, leasing, repossessions, fleets, international wholesaling and salvage auctions.
Among the highlights:
· New vehicle sales increased for the fourth consecutive year, and franchised dealers sold a record number of certified pre-owned vehicles.
· Increased financing availability balanced out inventory acquisition challenges for independent dealers.
· New vehicle sales into rental were their highest since 2007.
· Low fleet depreciation and inventory funding costs led to another record year despite a 1% decline in revenue per vehicle.
· New lease originations were up to 3.2 million, highest since 2000.
· Increasing off-lease volumes in the years ahead will pose challenges for remarketers and opportunities for dealers.
· Repo volumes increased 5%, totaling an estimated 1.37 million vehicles.
· Commercial and government fleet vehicle purchases increased for the fourth straight year.
· New vehicle sales into fleets are expected to level off near 900,000 by 2015.
· Wholesale volumes and prices increased in the U.K., while at the retail level both new and used vehicle prices improved.
· Emerging markets such as China and India will experience rapidly increasing used car sales in the years ahead.
· Prices and volumes increased modestly at salvage auctions in 2013.
· An increasing number of dealers are purchasing and repairing salvage-titled vehicles to sell to retail buyers.
The Report is available in PDF format by visiting the Used Car Market Report tab within the Manheim Consulting site, located at www.manheim.com/consulting. Members of the media may request a Report by contacting Lois Rossi at Manheim at lois.rossi@Manheim.com.
About Manheim (www.manheim.com)
Manheim is the leading global provider of vehicle remarketing services, connecting buyers and sellers of used vehicles to the largest wholesale used-vehicle marketplace. The company helps dealer and commercial customers achieve results by providing physical and digital auction channels, data analysis, financing, transportation, and mobile products and solutions.
Manheim pioneered in-lane vehicle auctions and has been an innovator in both digital and mobile auction platforms. Manheim registers nearly 8 million used vehicles annually, facilitating transactions representing more than $50 billion in value. Manheim’s research and consulting arm, Manheim Consulting, provides industry-leading market intelligence and publishes the widely recognized annual Used Car Market Report. The company offers dealer financing through NextGear Capital, Inc., and transportation services through Ready Auto Transport.
Headquartered in Atlanta, Manheim has more than 20,000 employees in 107 worldwide sites and generates annual revenues of more than $2.5 billion. A subsidiary of Cox Enterprises, Manheim participates in “Go Green with Manheim,” the company’s sustainability program.
NAAA Posted 1/27/2014