2012 Detroit Auto Show Preview

The annual North American International Auto Show, or NAIAS, is one of the premier auto shows in the world and one that kicks off the auto show season here in the U.S. Although the show’s press days are always well-attended by industry professionals, this year’s profusion of critical unveilings makes an appearance this year mandatory.   To begin with, Ford and Honda will show redesigned versions of their mid-size car combatants, the Fusion and Accord Coupe “concept” (Honda’s concepts are historically close to production spec).  Both brands have something to prove in the h ...

Continue Reading →

Chrysler’s Sales are Up but Rental Rate Tops Industry

Last summer we published an account of rental fleet penetration trends in our monthly market update Guidelines. In the July 2010 edition, we discussed the impact that excessive off-rental fleet supply can have on used vehicle values, and we pointed out makes and models that were at the biggest risk of seeing significant used value erosion because of high rental fleet penetration, or “pen”, rates. Back then, the five brands with the highest rental fleet pen rates were (in order) Saturn, Chrysler, Mercury, Dodge, and Isuzu, with each having a rate at or significantly above 30%. Fast fo ...

Continue Reading →

December 2011 Market Update

The release of pent-up demand stimulated by improved consumer confidence pushed November’s new vehicle sales rate to 13.6M units; the highest rate recorded since August ’09’s cash-for-clunkers figure of 14.1M. Overall sales grew by 14% relative to last November with light trucks maintaining a 54% share of total sales for the month.  November’s strong showing pushed light vehicle sales for the year to nearly 11.5M units and raised the consensus estimate for the full year to 12.8M.  The result will be that light vehicle sales in 2011 should beat last year by more than 10%.  ...

Continue Reading →

The LA Auto Show: Setting the Stage for Compact Utility Dominance

The week prior to the Thanksgiving holiday I spent two harried days running around the Los Angeles convention center taking in the city’s annual auto show, and while LA had its fair share of exotic concept and low volume performance debuts – Chevy Camaro ZL1, Mercedes ML63 AMG, Subaru BRZ, and the Porsche 911 to name a few – it was the reveal of two compact utilities, the Ford Escape and the Honda CR-V, that were arguably the show’s most significant. Let’s look at some data to back this up.  Just five years ago, compact utilities had a 9% share of all new vehicles sold; at the close of ...

Continue Reading →

Certified Pre-Owned Vehicles - Why So Popular?

I will be attending the Certified Pre-Owned (CPO) Dealer Conference in Las Vegas next week and wanted to share with my readers some insight my astute colleague, David Wagner, supplied to me.  CPO sales continue to break records on the number of units sold by manufacturers and overall CPO sales are outpacing last year’s numbers by 6.2% according to Auto Remarketing.  In fact, many manufacturers that were not in the CPO business are starting to put more emphasis on the program.  My good friend David Carp states in an article, “[Kia is] very excited about breaking an all- ...

Continue Reading →

Used Prices Continue to Remain in Positive Territory

Auction prices for the week of October 18th – October 25th showed a mild continuation of the declines we have been seeing during the past few weeks.  Data on small cars continued to drop but at a rate just less than 1% for the week based on our tracking vehicles.  This represents the smallest week to week decline since late August.  Meanwhile truck prices showed little movement during week with prices on most vehicles remaining flat compared to last week’s values. At the subsegment level the largest declines for the week were on luxury models, minivans and mid-size cars with ...

Continue Reading →

Compact Car Prices – What Goes Up…

As is customary for this time of year, increasing numbers of off-rental units have been finding their way to the auction over the past couple of months.  Historically, rental companies reduce the size of their fleets at the end of the busy summer months, and as a result, large quantities of late model cars, utility vehicles, and minivans find their way to the auction.   Typically this concentrated mass of weight will abnormally depress used prices for a period of time, especially on those models with a sizable rental penetration rate, before prices stabilize and even move back ...

Continue Reading →

October Auction Price Update

Today’s AuctionNet report with prices for the week of 10/11 – 10/18 showed small car prices continuing to decline at a similar pace first witnessed in early September.   The declines in October exceeded NADA’s expectations meaning that NADA trade-in values for October will be slightly higher than auction results for the remainder of the month.   We have seen slightly higher declines on Civic and Prius models where declines for the first 2 weeks of October are around 6% compared to September’s average price. On a lighter note prices during the week for Prius models stab ...

Continue Reading →

Join In to Discuss Wholesale & Economic Trends

On Wednesday, October 19th at 2:00pm I will be joining a panel webinar with Ira Silver and Frank Hackett from NAAA.  Mr. Silver will be addressing the economy and automotive market.  I will be discussing how NADA utilizes our industry leading database of vehicle transactions to create the values we publish in our Official Used Car Guide and in our online products.  This discussion will go into details on how NADA uses transaction data to align market data with our published values from a content standpoint.  In addition I will discuss the methodology behind our values and ...

Continue Reading →

UAW Deal – A Healthy Step for the Automotive Industry

October 14th is an important day for the automotive industry. It marks the day that Ford employees may or may not ratify the new UAW agreement.  The agreement with Ford is similar to the one already ratified by GM, which in a nutshell, has several key provisions: 1. Rewarding employees with bonuses instead of pay raises 2. Promises to “insource” jobs which will bring a lot of manufacturing jobs back to the US, while also expanding capacity at many plants. For details on Ford’s investments go to: http://tinyurl.com/6xtylyt 3. Buyouts of higher income emplo ...

Continue Reading →

 

    

LIVE CHAT
Search Blog
ARCHIVE