Spinella: February Saw Strong Results in Retail UC Sales, Kontos: Off-rental Units Threw Market for a Curve March 6, 2013

February Numbers Were Strong for UC Sales, Spinella Says

Art Spinella
CNW Research

February was a strong month for retail used vehicle sales – the volume was up 4.53% over February 2012, with 2,082, 681 units sold compared to 1,92,423 a year ago; Franchised dealers were up 11.65%, independent dealers were up 4.43%, and private party sales slipped 2.67%.

Click here for CNW Research’s statistics on February UC sales

Franchised Dealers Sold 747,534 Used Vehicles vs. 660,543 a Year Ago:
Independent dealers sold 699,065 vs. 669,420 a year ago, and private party sales slipped to 636,019 from 653,460 units.

Number of Used-Car Shoppers Virtually Unchanged from Year Ago:
With 5.56 million shoppers this year vs. 5.58 million from last year.

Number of Sub-prime Buyers Soared 53.2% in February vs. Year Ago:
Those with FICO scores under 550 were up 48.3%.

Wholesale Prices Influenced by Off-Rental Bias, Kontos Says

Tom Kontos
Executive Vice President, Customer Strategies & Analytics
ADESA Analytical Services

Wholesale prices rose sequentially and on year-over-year basis in January partly due to influx of off-rental units that biased average prices upward; Surge of off-rental units stems in large part from vehicles taken out of service in January following extended use in Northeast in aftermath of Superstorm Sandy.

Click here to read Kontos Kommentary on January market trends

Average Prices of Off-Rental Units Were Biased Upward:
With disproportionate share of late-model used vehicles hitting auction in January.

One Can Expect Wholesale Prices to Resume General Softening Pattern:
That began around mid-2012 and that was interrupted by Superstorm Sandy.

Wholesale Prices Were up 2.5% Over December and 1.3% Over January 2012:
Strongest year-on-year price increases were registered by fullsize vans, compact crossovers, midsize cars, fullsize pickups, and mini SUVs.
Expert Video Recap
Video news that moves people and ideas
Pollak_Dale_vAuto_UCMR_NADA 2013
Market Vehicle Valuation Transformation

Dale Pol­lak, Founder and Chair­man of vAuto, thinks that…

1. There’s been a fun­da­men­tal trans­for­ma­tion in the mar­ket regard­ing vehi­cle val­u­a­tion.
2. The whole­sale mar­ket was it for a long time as it was the only chan­nel for trans­ac­tional vis­i­bil­ity.
3. The retail mar­ket now pro­vides a great deal of vis­i­bil­ity due to new tech­nol­ogy, along with eval­u­a­tion ability.

Click image to view video and hear Pollak’s analy­sis of where things stand today in under­stand­ing the retail mar­ket price landscape.

Video News & Opinions
Video news that moves people and ideas
Vehicle Damage Reporting After Super Storm Sandy

Larry Gamache of Car­fax talks about lessons learned since the hurricane…

1. Super Storm Sandy affected many fam­i­lies and vehi­cles on the east coast.
2. Car­fax is work­ing with insur­ance com­pa­nies and state and local gov­ern­ments to make sure every­one of the vehi­cles is prop­erly iden­ti­fied and reported
3. Used car deal­ers need to make sure that all dam­age – espe­cially water dam­age – is reported and dis­closed in the proper manner.

Click image to view video and hear Gamache explain how key play­ers in the process are work­ing together.

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