Mid-Month Used Price Update: Prices Slip by 0.7% over the First Half of December

Used vehicle depreciation for units up to eight years in age dropped by 0.7% over the first half of December, which is a trajectory in line with NADA’s full-month forecast of 1.5%. Should the month finish as expected, used vehicle prices will end the year 0.5% higher than 2012’s record high level; in addition, depreciation would be on par with what has been recorded for December over the past few years (excluding 2012’s abnormally strong result stemming from Hurricane Sandy). Across segments, depreciation has largely fallen within a tight range of 0.2% to 0.7%, with co ...

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General Motors Sales Ignite in November

Looking at November new sales, all of General Motors’ (GM) brands saw significant increases, with GMC reporting the biggest of the month as sales grew by 20%. The largest contributor towards GMC’s success was the performance of two models in particular: Acadia and Sierra deliveries increased by 108% and 23%, respectively, which accounted for the lion’s share of total brand sales. For Buick, sales increased by 13%, mainly because of the all-new Encore, introduced in Jan. 2013, which accounted for 2,663 additional sales for the brand. GM’s volume leader Chevrolet m ...

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What New Vehicle Incentives Mean to Used Car Prices

It makes sense: incentivizing someone to purchase a car with cash, finance deals or lease deals reduces the price of that vehicle down the road. But just how much the different types of incentives impact used prices may surprise you.   A new vehicle cash incentive of $1,000 reduces the price of a one-year-old used vehicle by nearly $600, while $1,000 spent on finance and lease incentives reduces the price of that same one-year-old vehicle by $165 and $89, respectively.  If market conditions, such as the economy, time of year, level of supply, etc. and manufacturer suggested retai ...

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GM Makes Timely Return to Mid-Size Pickup Segment with Chevrolet Colorado

Back in 2000, there were eight mid-size pickup models on the market. Today there are only three with Toyota's Tacoma and Nissan's Frontier comprising the lion's share of new deliveries and Honda’s Ridgeline with the smallest piece of the pie. As a percentage of total new vehicle sales, mid-size pickups were responsible for 6.2% of all deliveries in 2000, although by the end of last year the segment's share had fallen to just 2%. Recent sales show that through October of this year share has fallen even further, reaching a scant 1.6%. The falloff in new vehicle sales ...

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BMW Raises the Bar at the 2013 L.A. Auto Show

The 2013 Los Angeles Auto Show opened its doors last week at the L.A. Convention Center, where many of the industry’s largest automakers welcomed the press and presented their most exciting and newest vehicles. As the first major event in the U.S. auto show season, anticipation was high as to what would be in store this year. After having cut back during the recession, automotive companies are beginning to respond to the rebound in auto sales by establishing a greater presence at the world’s biggest auto shows; that was certainly the case at this year’s L.A. auto show. ...

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November Mid-Month Update: Used Vehicle Depreciation Slows Considerably

After diving by 3.5% on a prior month basis in October, used vehicle depreciation eased up substantially over the first half of November with prices falling by 1.2%, a figure in line with NADA’s full-month target of 1.5% to 1.75% and one dramatically better than October’s mid-month fall of 3.1%. At the segment level, mid-size van prices have firmed up the most with depreciation improving to 1.6%, up by more than three percentage points from October’s full-month loss of 4.7%. The stabilization in mid-van prices has come despite 2013 model year volume increasing by 32% or 52 ...

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2013 L.A. Auto Show Preview: Exciting New Vehicles From Lincoln & Subaru

Opening next week, the Los Angeles Auto Show kicks off the auto show season here in the United States. As always, industry professionals and members of the press will be given the opportunity to check out the latest offerings from manufacturers before the doors of the L.A. Convention Center open up to the public on November 22nd. We’re gearing up this week here at NADA in anticipation of exciting new product announcements from across all segments, and while there are many noteworthy new introductions planned, a couple in particular stand out. Two vehicles on my hot list are the new L ...

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Clock Strikes Midnight: Volkswagen’s Fairy Tale Ride Turns into a Pumpkin

By 2005, Volkswagen’s market share in the United States had fallen to a barely noticeable 1.3% and the company’s outlook was less than stellar. Sales remained relatively flat in the years that followed, but in 2007, Volkswagen of America moved into its new U.S. headquarters in Herndon, Va. and the company reinvested in its American operations. Despite falling sales through the recession, market share continued to grow and by 2012, VW’s share had reached 3.0% and the brand notched 438,133 deliveries, its highest mark since 1973. Volkswagen, the third-largest automaker in the world, became a C ...

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GM Playing the Numbers Game: Silverado and Sierra Sticker Price Bump

This past spring General Motors introduced redesigned versions of its Chevrolet Silverado and GMC Sierra full size trucks in order to stay competitive in the ultra-hot pickup market. Having been last redesigned for the 2007 model year, each new entry was a bit overdue but extremely vital for GM to remain competitive in a segment with much fresher designs from  Ford and Ram.When GM first rolled out each new model, they carried very attractive sticker prices; but recently GM started playing numbers games which raised the average MSRP on both models by about $2,000. To put this lift in per ...

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Sonic’s Stand-Alone Pre-Owned Program: Another Factor to Support Used Vehicle Prices

There are numerous factors currently helping to sustain used vehicle prices at historically high levels: economic improvements, relatively tight supply, greater certified pre-owned awareness and an extremely favorable credit environment. But an often overlooked factor is the increased focus that dealers have on improving used vehicle operations. Sonic Automotive’s announcement this week that they will be opening numerous stand-alone pre-owned stores exemplifies this trend. Once considered something of a nettlesome by-product of new vehicles sales, used vehicle operations have assumed a more ...

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