Gas Prices Jump 24 Cents in Two Weeks – Used Price Reaction?

Unless you’ve been living under a rock, don’t drive an automobile, or have been so fixated on the Summer Olympics that you haven’t had time to absorb the news, you’ve probably noticed that gasoline prices have spiked dramatically over the past two weeks. There are numerous events that have been directing things behind the scenes here: First, positively viewed comments made by European leaders and the president of the European Central Bank were taken as a sign that the Eurozone crisis might not be as severe as originally thought.  This in turn would translate into stronger than antic ...

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2012 Model Year Used Value Spotlight: Compact Luxury Sedans

For this installment of our 2012 Model Year Used Value Spotlight we will take a look at a few sedans from the competitive compact luxury sedan segment, the Acura TL, Audi A4, BMW 328i, Cadillac CTS, Infiniti G37, Lexus IS250, and Mercedes-Benz C250.  For this comparison we are using a typically equipped MSRP which will include automatic transmission and leather seats, if not already standard.  The typically equipped MSRP does not include manufacturer destination charges or any incentives/rebates.  The table below highlights the typically equipped MSRP for each sedan along wi ...

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Rental Fleet Retention Special: 2012 Chevrolet Captiva Sport

Late last year GM initiated a unique experiment by launching the Chevrolet Captiva Sport which is a rebadged version of its now extinct second-generation Saturn Vue compact crossover utility model intended only for commercial customers.  GM’s motives behind the move were twofold; they hoped to satisfy growing rental demand for the efficient and versatile compact CUV segment, while at the same time preserving the used value retention of the popular Equinox. In the past, manufacturers have produced fleet only trims of within a model lineup, but never has a manufacturer spun off a model ...

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Japanese Brand Share: Where Are We Now?

It’s been over a year now since the devastating earthquake and resulting tsunami struck Japan, which as we all know severely altered the course of business for all Japanese automotive manufacturers. Over the course of the past year, we have watched as Japanese brands have worked to recapture lost market share, let’s take a look at share trends year-to-date, and discuss… For the purpose of this report we will focus primarily on Honda, Nissan, and Toyota brands. Looking at the mainstream segment the most earthquake affected brand was Toyota.  Toyota suffered a 3.8 point loss in mar ...

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June Used Price Update: Compact Car Depreciation Outpaces the Field

As predicted, wholesale price movement through the third week of June remained on the downward course set in May, as cumulative market prices declined by $300 or 1.7% compared to the prior month. The steep cut in gasoline prices over the past two months – which EIA puts at 50 cents from early April through the third week of June – combined with the drop-off in seasonal demand normally seen following the end of spring continues to place significant downward pressure on compact car prices, and as a result, the segment’s 3.3% fall was the biggest of any segment.  Prices for the remai ...

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First Drive: Dodge Dart

Chrysler’s astonishing comeback has been well documented and quadrupling profits in Q1 2012 compared to last year is further evidence of the company’s turnaround.  From a long-term standpoint we all know that product is the key for Chrysler to continue this momentum and the Dodge Dart offers a glimpse on what is yet to come.  I was given the opportunity to take the Dart – as well as most of the overall Dodge and Chrysler lineup - on test drives in Savannah Georgia last week to get an idea of the current lineup and the potential for vehicles farther down the road. The Dart is Chrys ...

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NADA OEM Insight: Subaru National Business Conference

NADA analyst Maynard Brown recently had the pleasure of attending the Subaru National Business Conference in New Orleans and provided some insight from his trip.  The team from Subaru is coming off of a record sales year & it appears as if they will easily exceed that number this year.  Dealers were pleased to hear that Subaru will be expanding their Indiana plant to increase Legacy & Outback production & retooling their microcar plant in Japan to build Imprezas.  Those enhancements should result in an additional 35,000 units per year for the North American market, ...

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Rental Fleet Sales Pad 1Q New Sales Results

Continuing to build upon the theme of our last blog entry on the growth of Chrysler group fleet volume at auction (specifically minivan volume), analysts at NADA have taken a deeper dive into rental fleet penetration at the brand level to determine what proportion of new vehicle sales over the first quarter can be attributed to rental fleet sales.  After examining R.L. Polk registration data over the first three months of the year, we see that some brands received less support from rental sales, while others continued to push a large percentage of units into daily rental fleets.  ...

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Fleet Volume Helping to Push Down Chrysler Van Prices

Recently Chrysler Group has received a lot of attention for strong sales performances in the new car market place.  Taking a deeper look at things, Chrysler, Dodge, and Jeep brands have all posted continuous year-over-year gains since July of 2011, which is especially impressive considering that they are the only domestic manufacturer during this time period to accomplish such a feat.  Not that long ago Chrysler Group was near extinction, but in what seems like almost overnight they have turned things around and have left the dark days of their bankruptcy well in the rearview mir ...

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When Will Used Supply Stop Falling?

As many in the industry know, used vehicle supply has been steadily falling over the past few years due to the substantial drop-off in new vehicle sales and lease originations.  In fact, NADA estimates that the supply of used vehicles up to five years in age was 17% lower in 2011 than it was in 2008.  The ongoing erosion in supply has been one of the primary catalysts behind the 15% increase in used vehicle prices since 2008, and NADA is forecasting that further declines will continue to pressure up used prices throughout the remainder of this year. Given its prolonged downtur ...

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