Inventory and Supply

Dropping loonie pushing used-vehicle exports to US

TORONTO - 

A lower Canadian dollar has been bad for some industries, and boosted others. One division of the Canadian automotive industry that has grown substantially over the past year is used-vehicle exports to the U.S.

In fact, according to DesRosiers Automotive Consultants, the number of used vehicles exported to the U.S. from Canada through November of last year grew to 200,000. This is the highest export level from Canada to the U.S. for pre-owned vehicles seen since 2002.

Interestingly, although these purchased are being driven by American car dealers looking to secure cheap used vehicles due to the current exchange rate, AutoTrader.ca also saw an uptick in U.S. traffic on its site, as well.

From Nov. 1 to Dec. 31 of 2015, U.S. traffic to the site increased by 27.7 percent year-over-year, AutoTrader.ca’s Paul Williams reported.

“autoTRADER.ca’s director of marketing Ian MacDonald was reported saying, “A weak Loonie makes it less expensive for Canadian manufacturers and exporters to sell their goods south of the border. More people looking to purchase Canadian goods increases demand. A larger pool of consumers means dealerships and private sellers have seen significantly higher sales year over year.”

And Canadian’s auto auctions have been selling south, as well.

In talking with ALG Canada regional director Geoff Helby this past fall, he likened export activity at ADESA’s Canadian auctions to a “U.S. dealer invasion.”

In fact, According to ALG data, exports were already exploding last summer. July 2015 (at the time) marked the highest volume month since January 2014 for U.S. dealer purchases.  Helby also reported a year-over-year U.S. dealer purchase volume increase of a whopping 114 percent for July 2015.

Tom Kontos, ADESA Analytical Services' chief economist, touched on this trend this past fall, as well, noting at the time it was definitely at trend to watch that was already having an impact on used pricing at auction, as well.

“I did also want to draw attention to the fact that U.S. bidders are contributing to the strength of the market, too,” said Kontos. “You have got tighter supply, and dealers coming in from across the border from the U.S. and bidding aggressively for cars, because of the strength of the U.S. dollar. The U.S. buyers are contributing to the strength of prices in the Canadian wholesale market.”

So, will the export trend last, grow or diminish with time? Josh Bailey, Canadian Black Book vice president and editorial director, said it’s truly cyclical, and the trend goes both ways depending on the two currencies.

Bailey said in October, “From what we hear from our auction surveyors, there are still many U.S. buyers in the Canadian market making purchases, whether online or in the lanes, mostly motivated by the foreign exchange rate.

“Naturally this creates some tension, but no doubt when Canadians were in the U.S. buying a few years ago, it was not any different,” he added.

 

January Tradetracker: Trucks, trucks & more trucks

TORONTO - 

The top three most-appraised vehicles Canadian dealers saw last month were, you guessed it, trucks.

To be more specific, they were light-duty trucks, and you probably won’t be surprised which ones they are, because they’re the usual suspects: Ford F-150, GMC Sierra 1500 and Ram 1500.

That’s according to Dealertrack’s monthly Tradetracker report for the month of January. The top five weren’t all trucks, though; those three goliaths were followed up by the Toyota Corolla and the Dodge Grand Caravan, respectively, to round out the top five most-appraised vehicles, overall, by Canadian dealers last month.

Broken down by domestic and import dealer, the results of January’s Tradetracker report are more of the same. The domestic vehicle most appraised by domestic and import dealers? The F-150. The import vehicle most appraised by import dealers? The Corolla. And the import vehicle most appraised by domestic dealers is Mazda’s Mazda3.

From the other side, the vehicles most looked at by trade-in owners boils down to just two vehicles, regardless of dealer type: the F-150 (domestic) and the Toyota RAV4 (import).

The Tradetracker brand of the month for January, Honda, experienced a bit different vehicle interest last month. Canadian Honda dealers’ most-appraised vehicles last month were the Corolla, Hyundai Elantra and Grand Caravan, respectively. From the other end, the vehicles most looked at by trade-in shoppers at Honda store last month were the Honda CR-V and the Civic. 

2016 Canadian new-vehicle sales to remain flat

TORONTO - 

Scotiabank released its Global Auto Report on Wednesday, predicting that new-vehicle sales in Canada will end up roughly the same as 2015’s tally of 1.9 million units.

Looking closer at the numbers, Scotiabank’s predicted 1.9 million units to-be-sold for 2016 is slightly higher than the 1,898,000 vehicles that were purchased in 2015.

In the report, the company says that it expects the sales volumes to remain largely flat for the year “as diverging trends between the industrial heartland and commodity producing regions balance each other out.”

Carlos Gomes, Scotiabank’s senior economist, summarized some of the expected factors to be at play that will be a theme in 2016.

"Car and light truck sales will continue to be supported by low interest rates and stimulative financial conditions around the world," Gomes said. "Economic activity and demand for new vehicles will continue to be buoyed by the strongest advance in Canadian non-resource exports since the new millennium, as well as by strengthening U.S. demand and a currency which recently fell below 70 cents (U.S.) for the first time since early 2003.

"Diverging trends between the industrial heartland and commodity-producing regions are expected to balance each other out in 2016, keeping volumes unchanged. Stronger employment growth and economic activity in the export-reliant manufacturing provinces will lift sales in these markets, but deteriorating fundamentals and weakening demographic and income trends will continue to pressure volumes in other regions."

Some other highlights of the report, according to Scotiabank, include the following:

  • Even with sluggish global demand, 17 out of Ontario's 21 manufacturing sectors posted double-digit export gains in 2015.
  • Broad-based manufacturing export gains are also expected to lift economic activity and vehicle sales in British Columbia and Quebec in 2016. Strengthening exports are particularly evident in British Columbia, with nearly half of all manufacturing industries posting export growth in excess of 20% in 2015.
  • In Alberta, new-vehicle sales declined 12 percent last year to 236,000 units. A further slide to 220,000 is projected for 2016, as oil companies continue to curtail their capital expenditures and the labour market weakens amid a large overhang in global crude oil inventories. 
  • Vehicle sales in the remaining provinces were in line with expectations last year. Volumes declined in Saskatchewan and Newfoundland, undercut by the downturn in the energy sector, and were unchanged in Manitoba and edged higher across the Maritimes.

Click here to check out the full report.

Canadian used-vehicle prices to soften over next 5 years

TORONTO and STAMFORD, Conn. - 

Looking at the most recent data available, 2015 was a strong year for residuals in Canada.

According to the RVI Group’s RVI Risk Outlook for December, the strong U.S. dollar helped maintain those high residual values in Canada through the end of November, with real used-car prices, after adjusting for MSRP, up 4.9 percent over the previous month and up 8 percent year-over-year by the end of November.

But RVI is expecting a softening in the coming years, mostly due to a growing supply of used vehicles alongside “the potential for the USD and CAD exchange rate to increase.”

Over the next five years, RVI expects to see a softening in used-vehicle prices as their supply is forecasted to increase through 2019. By 2018, RVI’s prediction is that used vehicle prices will fall by 8 percent compared to their current levels.

Here are a few other Canadian economic overviews, according to RVI, at the end of November:

  • In November, the exchange rate was $0.75 USD/CAD
  • Gas prices averaged $1.03/liter (a 12 percent decline from November 2014)
  • After two quarters of contraction, Canada’s GDP growth in Q3 was 2.4 percent

The Manheim Canada used-vehicle price index increased by a tad bit over 2 points from November, marking a year-over-year increase of 21.2 points. According to Manheim, the month’s increases were mostly powered by an increase in mid-size and SUV values (4.9 and 3.8 points, respectively). Sports cars decreased by 17 points while pickups saw a 4-point decrease. 

5 keys to understanding current auction environment

TORONTO - 

To look deeper into today’s auction trends — from volume and pricing to the leasing market’s impact and U.S. exports — Auto Remarketing Canada reached out to Tom Kontos, executive vice president and chief client officer at ADESA Analytical Services.

See the key highlights below that provide a full-picture view of Canada’s current wholesale environment.

Auction volume

In looking at ADESA Canada data, in particular, Kontos explained the company has seen growth in auction volume this year. However, much of the growth is coming from dealer consignment and not from “institutional growth.”

That is to say, Canadian auctions are still not seeing dramatic supply expansion from avenues such as off-lease, fleet and rental, which normally serve as some of the biggest sources for quality used vehicles at dealerships.

“I don’t think that (institutional volume) is growing at the kind of clip the dealer volume as grown. We have seen growth in volume, but it has not been from the off-lease volume,” Kontos said.

Impact of leasing trends

Leasing has been picking up a bit again in recent years after leasing penetration fell off dramatically in 2007 and 2008. This, as well as a surging new-vehicle market, bodes well for used supply in coming years.

“We had a record year last year, and it looks like it will be another record this year in new-vehicle sales. So even if lease penetration is kind of stagnant, when you have a bigger pie, the same percentage of that pie will yield growth,” said Kontos. “The short answer is yes, we do expect growth in off-lease auction volume going forward.”

According to Kontos, we should expect to see supply expand considerably in the timeframe of 2016 to 2017.

Rise of the SUV

An interesting trend has arisen in Canada as of late that is having a dramatic impact on what units you are seeing in the auction lanes: increasing interest in the SUV and crossover segments. Kontos explained that in recent years, new-vehicle sales growth in the SUV and truck segments has climbed significantly, and now we are seeing these units enter the auctions at a rapid pace.

“New-vehicle sales in Canada in the last couple of years has been highly skewed toward trucks, primarily SUVs, whereas Canada historically has been much more concentrated in cars and minivans … And that sort of wave that the U.S. has been through for many years now, and now the CUVs, too, seem to be pretty popular in both countries, too,” Kontos said. “So the composition of what we are seeing at auction is starting to reflect the growth in popularity a few years back of SUVs and crossovers.”

Kontos explained the surge in popularity of SUVs and trucks in Canada can be attributed to three factors:

  • Stable gas prices
  • Variety of models available
  • Versatility of SUVs and CUVs (the fact that many of them are on car platforms versus heavier body-on-frame platforms)

Wholesale Prices

According to ADESA data, auction prices were up 8.8 percent year-over-year by mid-2015. But Kontos said that some of the average prices were skewed by the fact ADESA auctions sold more SUVs and higher dollar vehicles this year.

However, the majority of segments have seen price increases in 2015; so after adjusting for the change in mix of vehicles, Kontos said the increase would still equal around a 5-percent spike.

“It is still significant growth in average prices year-over-year in Canada. That, again, is a reflection of still tight supply, especially for the off-lease side,” Kontos said.

A few of the car segments are seeing prices decrease a bit, namely the entry midsize cars. 

“I would say the strength of the market tends to be in the SUV segment and pickup truck segments, whereas the rest of the markets in some segments, you will have some decline, or much less growth than what you are seeing in the SUV and pickup truck segment,” Kontos said.

U.S. exports on the rise

Many in the industry are seeing growth in wholesale U.S. exports in light of a weak Canadian dollar and suffering exchange rate. This is serving to put even more pressure on used supply and, consequently, auction prices, as well.

I did also want to draw attention to the fact that U.S. bidders are contributing to the strength of the market, too,” said Kontos. You have got tighter supply, and dealers coming in from across the border from the U.S. and bidding aggressively for cars, because of the strength of the U.S. dollar. The U.S. buyers are contributing to the strength of prices in the Canadian wholesale market.”

These keys were included in Cherokee Media Group's inaugural North American Used Car Industry Report. The report, which higlights retail, wholesale, finance trends and more in the North American remarketing industry, will be available on-site to Used Car Week attendees. The Report will be available online and will be sent out to subscribers in December. To make sure you receive this comprehensive data report, subscribe here.

 

TRADER, vAuto announce plans for new subprime tool

TORONTO, and OAKBROOK TERRACE, Ill.  - 

TRADER Corp. recently announced it is renewing its partnership with U.S.-based solutions company, vAuto, extending their relationship for another five years in an effort to help dealers address their used-vehicle inventory management challenges.

Through the agreement, TRADER will continue being the exclusive Canadian reseller of the vAuto product suite, and vAuto will maintain their ongoing integration with TRADER’s proprietary consumer and marketplace data.

And with the announcement came news that TRADER and vAuto are in discussions to introduce new initiatives in the coming months — the first being a new vAuto Subprime Booking tool.

The tool — which is expected to become available for the Canadian market Aug. 10, though consumers will be able to register for the module in late June — will assist dealers in sourcing subprime inventory to meet the demands of credit-challenged customers.

Canada’s consumer debt is growing at a rapid pace, and soon, the need for tools such as this will be even bigger as dealers look to service these credit-challenged vehicle shoppers.

Robert Rath, vice president of dealership products and business development at TRADER, said, “Subprime is an area of business that tends to be overlooked, but in the grand scheme of things dealers could be losing significant sales and F&I profit every month on subprime vehicle sales.”

Auto Remarketing Canada reached out to TRADER to get the lowdown on the new subprime offering. Rath explained the impending launch of the tool shows the company’s growing commitment to be provide innovation solutions with a focus on dealer services.

“We are always investigating ways to evolve TRADER offerings and continually show our commitment to our Canadian dealers,” said Rath.  “The fact is that the subprime market is growing, and our research indicates that dealers have a gap in process, tools and resources to maximize this opportunity; so the decision to bring this tool to the market simply makes sense for everybody.”

As for what problems and hurdles this tool will help dealers solve, the new offering works to help dealers easily locate subprime inventory, appraise vehicles and determine a profitable exit strategy.

Easily locating subprime inventory with direct relevant to lender criteria, said Rath, will allow dealers to more quickly match inventory to credit-challenged consumers’ needs and payment constraints.

The important element here is that this process happens before entering the sales process.

“The key is being able to match buyers with cars prior to the sales process, and alleviating any frustration for these buyers will be key as the dealers will be able to show vehicles that they know the buyer can purchase prior to showcasing,” said Rath.

The tool will then help dealers to appraise vehicles and determine what makes the most sense from a retail, wholesale and subprime perspective on that individual vehicles.

Lastly, Rath said the tool will “provide insights as to where process improvements need to be made during the consumer sales cycle.”

And the pool for dealers to pull potential customers from in the subprime space is expanding daily.

In a recent article, the Financial Post concluded the Canadian subprime market has been growing as a compounded rate of 20 percent year-over-year.

And Rath pointed out subprime loans make up 25 percent of all Canadian car loans.

“A growth in this area coupled with higher front/back-end profitability and a low delinquency rate makes this segment very attractive,” Rath said.

He also explained that recent advancements in terms of payment automation and vehicle repossession have cut down on the risk for dealers in regards to delinquencies.

Though this market is growing, is the credit there to serve this marketplace, or will it be hard for dealers to find lenders?

Credit tightened considerably from traditional banking sources after the 2008 economic downturn, but Rath said that won’t hinder dealers looking to serve these customers today.

“Increased tightening of lending from traditional banking sources during the 2008 credit crisis caused consumers to look for alternatives,” said Rath. “Dealers always have had choice when it comes to how they want to deal with consumer financing. It’s a matter of picking a good lender as well as doing the proper due diligence with the consumer to make sure that the vehicle and payment terms make sense to them.”

 

Dealer Copes with Used-Vehicle Supply Issues

SASKATOON, Saskatchewan - 

Used-vehicle dealers in Canada are well aware of the ongoing supply issue. It’s certainly not impossible to stock your lots with used inventory, but the opportunities may require a bit of a change in strategy than have been typical in recent history.

We reached out to Michael Wyant, the general sales manager of the Vaughn Wyant Auto Group, Auto Remarketing Canada’s Dealer of the Year, to see what’s going on at his Saskatoon-based group and find out how he’s replenishing his inventory.

According to Wyant, one of the key challenges he now faces comes from the south – in the form of exportation to the United States.

“The used situation is actually pretty interesting,” Wyant said. “It’s really hard to buy stuff right now, because of what’s happened with the dollar and the amount of vehicles going across the border now. We can have a 90-day F-150 that’s been fully reconditioned at our store, and we can send it to the block and we can make money on it because guys are paying out so much for things and shipping them down south and making money that way. It’s gotten a lot tighter because we’ve got more players now that are in the export game, and its driving prices up dramatically on some of our more mainstream products that we sell off in volume with. So it’s quite a bit different now than it was say four or five months ago.”

The GSM says it’s not uncommon to have a competitively priced, for the market, used vehicle on the lot that won’t sell on the retail level that’s an easy sale on the block to an exporting wholesaler, causing extreme pressure on retail pricing.

“It’s come up a bit as wholesale values have, but I don’t think the retail pricing has come up at the same level that the wholesale prices have because you’re seeing lots of dealers make money on a typical retail piece on the block,” Wyant said. “And that’s not something that, in our industry, has happened in a long time.”

While this is sometimes may provide a nice crutch for vehicles that are proving troublesome to get moving, if it happens too often, it can hurt return business.

“There’s a balancing act where you want to make the right decision for your used-car department, but you don’t want to do it at the sacrifice of the overall longevity of your parts and service business,” Wyant said. “It’s a juggling act, for sure.”

And the pressure doesn’t seem to just be coming from the wholesale side, either. According to Wyant, he’s also seeing a change with his leased vehicles.

“With our off-lease portfolios, a lot of customers are buying out based on the vehicles retaining their value so well,” Wyant said. “Even on some factory leases where you typically have an inflated residual. Mercedes-Benz is a good example. We’ve got a lot of people that, instead of renewing, are just buying their vehicles out because the residual value, compared to the actual vehicle’s value, as where typically in the past the actual value is going to be quite a bit lower than the residual, and people just end up renewing into a new vehicle. We’ve seen a lot more buyouts, which means less inventory on our lots, and our preowned lots, because it doesn’t give us an opportunity to buy that vehicle back from the manufacturer.”

So how do you replenish your used-vehicle inventory? Wyant says a heavier emphasis on current-customer outreach has been key.

“We’re really mining our database, mining our service departments. And if there’s an equity opportunity, we utilize software to identify resell equity customers in our database every single month,” Wyant said. “So we’re making a lot of proactive telephone calls, trying to get the vehicles that are in our marketplace on to our preowned lots and sell a new car in the process. That’s become a very big part of our business where a year ago it really wasn’t. But we have to do that in order to have the inventory to sustain our used-car business right now.”

Used Supply & Pricing: What to Expect in 2015

TORONTO - 

Used supply is tight. Are you sick of hearing that yet?

Well, you may be in luck, as Canadian Black Book editorial director Josh Bailey voiced some promising predictions for supply and used prices for the near future.

Supply is expected to loosen this coming year, and as a result, prices are likely to start dropping.

In fact, they already have.

This past September, according to the ADESA Canada Used Vehicle Price Index, wholesale prices fell by an average of 0.4 percent. And in October, the Index fell by another 0.2 percent.

But Bailey says soon the price drops will move beyond seasonality and as predicted may end up looking a bit more like the prerecession market.

The Truck Anomaly

In looking back over the past year at used-price trends for 4-year-old vehicles, Bailey pointed out one phenomenon that is bucking industry trends right and left: full-size pickup price movement.

When a vehicle ages, it is supposed to depreciate, right? Well, there are exceptions.

Going back to January, 4-year old full size pickups were holding about 44 percent of their value.

As of mid-October, the segment was holding 44.7 percent of its value. This is slightly higher than the January rate, and at some points this year, the segment saw prices rise up almost 2 percentage points from rates seen at the beginning of the year.

This rate is also higher than the general equity average of 43.9 percent MSRP of 4-year-old vehicles, as of mid-October.

“This is quite unusual, since normally, vehicles are still a depreciating asset, even though when we look year-over-year coming out of the recession, things have been picking up as a whole,” said Bailey. “But throughout The course of the year, you expect things to go down, and that has not been the case with the full-size trucks.”

Bailey said this trend defies most analysts’ ability to explain. Similar to trends seen in the U.S., gas prices are dropping, but at the beginning of the year they were climbing — and so were truck prices.

“So there was a disconnect between what most people would expect to see with rising gas prices and larger vehicle prices,” Bailey said.

There has also just been an increase in general interest in trucks when you observe Canadian new-vehicle sales.

“Trucks are tremendous in growth and that is spilling over into the used-car market,” Bailey added.

Competition in the Luxury Market

Another aspect of the wholesale market that has been making waves this year: luxury vehicles.

Their story has been a bit different than the trucks this year, with luxury cars seeing some of the largest price declines in the market.

Bailey said the premium luxury segment, sporting vehicles such as the BMW 7 Series and Audi A8, saw some of the steepest drop offs in price in the lanes.

But Canadian Black Book also noticed the entry luxury cars and the small luxury SUVs saw some comparatively sharp declines, as well.

Bailey said this decline is mostly due to the competitive landscape for luxury manufacturers in Canada.

“When we look at the competitive landscape in Canada, the apparent battle for No. 1 position in the luxury market is really creating some downward pressure on pricing on the new side, and that spills over into the used-car market,” Bailey said. “It is unrealistic to believe you could sell a 1-year-old vehicle for more than what you could spend for a new vehicle.”

Strong incentive spends in the luxury market are cascading down to the used side, pushing high-end vehicle prices down at auction.

The Skinny on Supply

Prices have been rising this year, but analysts predict this may be the last 12 months the industry will experience an overall annual price spike as supply is expected to expand in 2015.

As of mid-October, the general average equity rate for 4-year-old vehicles was sitting at 43.9 percent of MSRP.

This is up 1.6 percent from 2013; and compared to 2012, this rate is up 3.2 percent.

“We’ve seen pretty steady increases for the past of couple of years,” Bailey said.

For the rest of the year, Canadian Black Book predicts there will still be a demand for used cars that cannot be met by the current supply.

Bailey also pointed out the vehicles that are coming off lease are equity-heavy, a trend that impacts supply, as well.

“I think some people have underestimated the fact that even with the vehicles that are coming off lease, since we are looking at 4-year-old vehicles now, even in 2010 there was a level of pessimism in the residual forecasts that were set. That then translates to a lot of equity in the cars coming off lease now,” he said. “The effect of that is both customers and the dealers who are taking them back, they are both buying those vehicles up and stemming from them hitting any open market. That’s been a compounding factor in this aspect.”

Though prices remain higher than levels seen in 2013, over the last couple of months, the industry has definitely seen rates decline.

In fact, rates dropped nearly 1 percent from October to November, which Bailey pointed out is a fairly steep decline.

“It’s not unheard of, but certainly this time of year dealers tend to be a little more reluctant to bring extra inventory into stock because of as soon as Halloween is over we are into Christmas, and people’s minds tend to drift away from big spends and toward shopping for Christmas. It’s a typical drop,” Bailey said.

Canadian Black Book predicts there will be some increase in supply next year, although once again, there will most likely be some positive equity in the vehicles coming off lease, which likely will contribute to the trend “of those cars getting scooped before they enter the open market,” Bailey said.

That said, in 2011, leasing rates were coming up, so more off lease product is expected to flow back into the market this coming year.

“It will be a little better than this year in terms of supply situation, but I don’t believe there is a great deal of room to grow the used car market, given the new-car market incentive situation,” Bailey said.

Though there are certain segments here and there that will experience growth, Bailey asserts the market is going to hit a plateau unless there is a willingness to move away from strong cash offerings and other incentives on the new-car side of the market.

“For 2015, we expect things to be similar to this year, and it won’t show the strong growth that we have seen for the last couple of years,” Bailey said. “For the end of this year, things will roll along at a steady pace.”

Since it has been such a strong year for new-car sales, Bailey predicts manufacturers will capitalize on that momentum during the holiday season and will continue to ramp up incentive spending.

“So, I think this time could be a great time to buy a new car, which in turn means there are a significant amount of trade-ins coming in, so it might be a good time to buy a used car, too,” Bailey said.

And though 2015 has the potential to be a “transition year,” showing little price or supply movement up or down, Bailey concluded: “We do think that coming into 2017 and 2018, we are going to get back into a situation where there is not so much grappling for the first car that comes down the auction lane.”

Dealertrack Canada Launches New Advanced Inventory Tool

MISSISSAUGA, Ontario  - 

Dealertrack Canada, part of Dealertrack Technologies, announced this week it is introducing Inventory+ to the Canadian market.

The tool utilizes the company’s Tradetracker, AAX and eCarList offerings and provides new mobile capability.

"For years, Dealertrack has delivered proven inventory solutions that help dealerships increase the efficiency and profitability of used car operations,” said Michael McCarthy, general manager, Dealertrack Canada. “Inventory+ is going to be a game-changer for Canadian dealers. This new inventory management solution brings all the powerful capabilities of our previous offerings together, along with new innovations, to help drive optimal and measureable results for our dealer and dealer group clients.”

The company asserts the new tool covers the entire life cycle of the vehicle inventory process from appraising and stocking all the way through to dealer results management.

The “cornerstone” of the new tool, according to the company, is the new Appraisal Workflow functionality, which works to speed up the appraisal process by increasing workflow efficiency.

Through the Appraisal Workflow system, dealers can input and manage key information, including legal disclosures, photographs, reconditioning information, ACV Tracker, book-out data and values of vehicles in their inventory.

Through the new Inventory+, dealers can also create a metric — Profits-Per-Day — which can help them manage both turn and gross profits.

Dealertrack will be showcasing Inventory+ at the NADA Convention and Expo 2015 at Booth 2219S.

Most-Appraised Vehicles: What Shoppers Are Looking For

TORONTO - 

Fall appraisal trends are so far mirroring summer results, with the ever-popular Ford F-150 out in front last month, according to DealerTrack's TradeTracker report.

The Ford F-150 is also No. 1 for year-to-date trends, similar to what was seen in 2013.

The Toyota Corolla was the No. 2 most appraised vehicle in Canada in September.

The top three were rounded out by the Dodge Caravan, taking the place of the Honda Civic sedan, which moved down to fourth place. Year-to-date, though, the Honda Civic easily takes the third spot.

Another Ford model, the Escape, rounded out the top five. Year-to-date, this position has been held by the Dodge Grand Caravan.

These reports are provided monthly to Auto Remarketing Canada and are a result of Dealertrack Technologies' TradeTracker solution, which is an online, trade-in evaluation tool that allows dealerships to create instant, accurate appraisals and gain insight into their used-car business. 

The report also breaks down the vehicles by market, as follows:

  • The top domestic vehicle appraised by domestic dealers was the F-150.
  • The top import vehicle appraised by import dealers was the Corolla.
  • The top domestic vehicle appraised by import dealers was the Ford Escape.
  • The top import vehicle appraised by domestic dealers was the Mazda3.

The report also narrows down the top vehicles being looked at by trade-in owners.

Within this group, the top domestic vehicle looked at by domestic owners was once again the F-150.

For import owners, the top import vehicle looked at was the Corolla.

And when it comes to domestics, import owners looked at the Escape the most in September.

Lastly, the top import vehicle looked at by domestic owners was the Toyota Rav4. This spot has been consistently held by the Toyota Corolla, who holds the year-to-date trend.

The TradeTracker reports also include a Brand of the Month section, which highlights appraisal trends by an individual brand each month.

The brand highlighted in September was Kia.

The top three vehicles looked at by trade-in customers at Kia dealerships were the Sorento, Soul and Rio, respectively.

The top three off-make vehicles appraised by Ford dealers were the Mazda3, Ford Focus and Dodge Grand Caravan, respectively.