Perhaps Black Book should write down wholesale records in chalk or pencil; something that can be easily erased and updated.
Analysts said the Black Book Used Vehicle Retention Index set a new record, as the September reading came in at 169.5 points, representing an increase of 3.8 points or 2.3% from August.
The particular vehicle that delivered an online order to your home or brought the air conditioning or plumbing repair crew represents the hottest segment of a wholesale market that’s continue to sizzle.
Black Book reported on Tuesday that overall wholesale prices continued to increase for a fifth consecutive week.
Here’s another information source used-car managers can use to create the best possible inventory for their stores.
On Tuesday, autoniq — a business unit of KAR Global — announced the launch of the autoniq Wholesale Index, which is a new product that can provide direct access to auction data on vehicles sold at auction — both online and at physical locations.
The company said the data is available by subscription on the autoniq app and showcases information on similar year, make and model vehicles sold at auction. Users can toggle the data from as close as 50 miles to as far as 3,000 miles from their dealership.
KAR said in a news release that data is comprised of ADESA sales data for the last 90 days.
“With extreme volatility in the used car market today, dealers need new vehicle valuation data more than ever to preserve and optimize their margins,” said Rick Griskie, president of digital marketplaces at KAR.
“The autoniq Wholesale Index provides real transaction data from the dealer’s local market, allowing them to make informed, data-backed bidding and buying decisions,” continued Griskie, who also is among the more than 140 executives and experts scheduled to appear during Used Car Week, which begins on Nov. 15 at the Red Rock Resort in Las Vegas.
KAR explained that the autoniq Wholesale Index was developed based off feedback from dealers seeking more comprehensive live market data.
With the new digital tool, dealers can see a quick summary showcasing the average local wholesale transaction price and average mileage of a specific vehicle’s make, model, year and trim. The autoniq Wholesale Index detail view is updated frequently to ensure customers have the right data at the right time.
“Dealers want to know what’s happening in their local marketplace—they’re looking for access to actual transaction data,” said Joe Oliveri, vice president of product management and data services at KAR. “This powerful new tool gives our dealers a competitive edge so they can quickly and conveniently budget, bid, price and ultimately maximize returns.”
Existing users can add autoniq Wholesale Index to their account by contacting support@autoniq.com. New users can sign up at autoniq.com/signup or by calling (866) 482-8421.
Perhaps the opposite of the “perfect storm” is the “perfect drought.”
The latter term is what KAR Global chief economist Tom Kontos used to describe what’s happening in the wholesale market, especially when it comes to prices and supply.
As a used-car manager, perhaps you might be thinking, “Well, if I’m going to have to spend this much on inventory, at least those cars will turn fast.”
But as ESPN college football broadcaster Lee Corso says, “Not so fast, my friend!”
After three straight months of sequential declines following May’s all-time high, wholesale vehicle prices have started September with a month-over-month gain.
That’s according to a mid-month reading of the Manheim Used Vehicle Value Index, which was at 201.4.
Adjusted for mix, mileage and seasonality, wholesale prices in the first half of September were up 3.6% from August.
While values have remained near …
Fashion-forward used-car managers likely already know that wearing white after Labor Day isn’t frowned upon like it used to be.
Black Book is seeing another trend after Labor Day in the wholesale market that’s different from what dealers often have seen in past years, especially if they’re looking for late models that could serve as a substitute for buyers seeking a new vehicle.
“Traditionally, as we move past Labor Day, values begin to decline with the largest portion of the yearly depreciation typically occurring in the fourth quarter,” analysts said in the newest Market Insights from Black Book released on Tuesday.
“However, that is not the case this year, we’ve now had four consecutive weeks of overall market increases in wholesale values,” analysts continued in the report. “With new inventory not expected to improve until later into 2022, wholesale prices are anticipated to remain at elevated levels for the foreseeable future.”
While overall readings moved higher again during the week that closed on Saturday, Black Book noticed more significant action within 2- to 8-year-old vehicles, which increased in value by 0.38% as well as models less than 2 years old, which jumped in value by 0.51%.
Carving out a look at just cars, Black Book indicated that overall car segment prices on a volume-weighted basis increased 0.43% last week. That value gain surpassed what analysts spotted a week earlier when the rise came in at 0.31%.
Black Book noticed that six of the nine car segments generated value gains last week, with midsize car leading the way with a jump of 0.81%.
The only car segments to report value declines often are more in demand during the summer, including sporty cars (down 0.47%), premium sporty cars (down 0.07%) and prestige luxury car (down 0.02%).
Also of note and mentioned during the previous installment of Lane Watch, Black Book said values for compact cars now have increased for five weeks in a row with the latest rise being 0.73%.
Turning next to overall truck segment trends, Black Book pointed out that its volume-weighted data showed values increased 0.36%, representing quite a jump from the previous increase of just 0.09%.
Models that can serve individuals and families posted the largest value gains as sub-compact crossovers rose 0.92% and compact crossovers increased 0.75%.
Only one truck segment experienced a decline as full-size luxury crossovers/SUVs softened by 0.10%.
Finally, values for the workhorses of the commercial world continue to climb, as Black Book said full-size vans (up 0.43%) are a standout segment with 33 of the last 34 weeks reporting increases for an average weekly increase of 0.54%.
The assertions Edmunds made after sharing its latest data on used-vehicle retail prices and trade-in values might be a good news-bad news scenario for dealerships.
One vehicle segment that is potentially an appealing option for consumers looking to solve their transportation needs — especially if they have to do it quickly because of recent storms — is continuing to cost more for dealers to acquire.
If you live in a Western state, chances are the landscape features more than just mountainous scenery.
It may also include pricey used vehicles.
Same goes for two metro areas of South Florida.
