In this special episode of the Auto Remarketing Podcast, we feature a panel discussion from Used Car Week with top analysts in auto retail.
Moderated by Cherokee Media Group's Joe Overby, this panel includes Kevin Roberts of CarGurus, Zack Krelle of TrueCar, Karl Brauer of iSeeCars.com and David Greene of Cars.com.
Stay tuned for more podcasts from UCW panel discussions as they become available.
To listen to the conversation, click on the link available below, or visit the Auto Remarketing Podcast page.
Download and subscribe to the Auto Remarketing Podcast on iTunes.
The jury is still out on how November fared in the overall used-car and certified pre-owned markets, but recent industry analyses paint a clear picture of how the fourth quarter has started.
Beginning with CPO, there have been 2.04 million certified pre-owned vehicle sales through 10 months of the year, according to an analysis of Motor Intelligence data in the latest Kontos Kommentary from ADESA chief economist Tom Kontos.
That’s a …
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Used-vehicle sales fell 9.2% year-over-year in September and are trending toward a full-year tally more than 12% softer than that of 2021, according to Cox Automotive.
But there remains some positive signs, particularly late last month, which saw an uptick in the rolling 30-day retail sales for used cars, according to the company’s Manheim Market Insights released Friday.
“Retail sales of used vehicles continue to …
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Despite a projected double-digit climb in retail used-vehicle sales in August versus July, dealers are souring on their prospects for retail success during the third quarter.
Cox Automotive compiled a variety of information connected with dealerships and their used-vehicle operations, including the newest Cox Automotive Dealer Sentiment Index (CADSI). To gauge the pace of used-vehicle deliveries, Cox Automotive leveraged …
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Experts likely are just beginning to tally up how many used vehicles dealerships retailed in August. But ADESA chief economist Tom Kontos highlighted how many used vehicles were retailed through July as a part of his latest Kontos Kommentary.
Kontos reported that franchised and independent stores combined to retail …
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Cox Automotive spotted multiple used-vehicle retail sales metrics softening in July on both a sequential and year-over-year comparison.
And experts see rough sledding for used-vehicle retailing for the rest of the year.
According to Cox Automotive estimates shared on Tuesday via a Data Point, July total used-vehicle sales landed near …
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Though there was a bit of improvement from April, used-vehicle sales in May were down double-digit percentages on a year-over-year basis, says Cox Automotive, noting that spikes in interest rates, fuel costs and vehicle prices have dampened the market.
The average APR on a used vehicle rose to 9.23% in May, up from 9.16% in April, according to Edmunds, whose data shows the used-car APR has been above 9% for …
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UPDATE: Cox Automotive has updated its reporting of November used-car sales figures, based on registration data not previously available.
The company now estimates there were a shade under 3 million total used vehicles sold in November, which beat year-ago figures by 3%.
The total used-car SAAR was projected at …
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Like its fellow publicly traded contemporaries, the used-vehicle department at Group 1 Automotive posted superb performance metrics during the second quarter.
When looking at just its U.S. data on a year-over-year comparison, Group 1 reported a whopping 63.2% jump in used-vehicle retail sales revenue and a 113.2% spike in used-vehicle retail gross profit in Q2.
The company said its total used-vehicle retail sales revenue came in at $882.9 million while that gross profit number was $87.3 million.
Group 1 retailed 34,008 used vehicles during the second quarter, and the company wholesaled another 6,606 units, representing increases of 30.1% and 28.3% year-over-year, respectively.
Gross profit on those used-vehicle retail turns rose by exactly $1,000 year-over-year to $2,568.
And likely reflecting what’s happening in the lanes that’s been well chronicled by Black Book, Cox Automotive and KAR Global, Group 1 indicated its gross per vehicle wholesaled nearly hit the $1,000 mark. That gross metric jumped from $311 to $969.
Furthermore, as discussed by StoneEagle F&I, Group 1 watched its gross in the finance office increase, too. Its F&I gross per unit retailed — which includes both used and new models — came in 13.2% higher year-over-year at $2,114.
One other notable data point associated with used vehicles, Group 1 said its service and parts sales revenue jumped by $78.4 million or 30.8% year-over-year to $332.6. The gross profit for service and parts sales made an even healthier increase year-over-year, coming in $46.1 million or 34.0% higher at $181.7 million.
Group 1 also shared its performances through the first six months of the year. The highlights in the used-vehicle department included:
— Retail used vehicles sold: Up 19.8% to 64,439 units
— Wholesale used vehicles sold: Up 7.1% to 13,046
— Gross profit per used vehicle retailed: Up 57.6% to $2,136
— Parts and service sales revenue: Up 12.5% to $628.9 million
With wholesale values surging each week during the month, it probably comes as no surprise that the Black Book Used Vehicle Retention Index for March set a new record.
Black Book reported on Monday that its index reading came in at 141.2, representing an 8.9 point (or 6.7%) increase from February.
Analysts also noted the index currently stands 23% above where it was at this same time last year, right before a record drop due to the start of the COVID-19-related economic closures.
“Wholesale prices continued to increase each week, with an accelerated rate of increase throughout March,” Black Book senior vice president of data science and analytics Alex Yurchenko said in a news release.
“Continuous shortages of used and new inventory, coupled with elevated demand driven by the federal stimulus and an improved labor situation in the last two months, drove wholesale prices to record heights across all segments,” Yurchenko continued.
“This month, most of the car segments led the increases, with the compact car segment increasing by 10 points (7.5% increase) and the mid-size car segment increasing by 9 points (6.9%),” he went on to say.
In a separate statement also released on Monday, Curt Long made several similar assertions after the U.S. Commerce Department released new-vehicle sales data for March. Long is chief economist and vice president of research at the National Association of Federally-Insured Credit Unions (NAFCU).
“Vehicle sales soared in March to 17.8 million annualized units, continuing a trend of good news for the American economy,” Long said. “Strong fiscal support, more stimulus checks, low-interest rates, better weather, and great March job numbers all contributed to this surge.
“Fleet sales are slow, with GM reporting a 35% decline versus a year prior, but consumer sales have more than made up the difference,” he continued. “The problem in 2021 will be supply, as microchip shortages worldwide have affected many industries and paused production on some Ford and GM lines. Supply issues have not hindered sales yet but could ripple into the summer and fall.
“Overall, NAFCU expects a very strong year for vehicle sales and beginning of the post-COVID recovery,” Long went on to say.
And with sales surging, the Black Book index might remain steady, too.
The Black Book Used Vehicle Retention Index is calculated using Black Book’s published wholesale average value on 2- to 6-year-old used vehicles, as percent of original typically equipped MSRP. It is weighted based on registration volume and adjusted for seasonality, vehicle age, mileage and condition.
To obtain a copy of the latest Black Book Wholesale Value Index, go to this website.
