Spinella: Vehicle Ownership Stretching Out, NADA: Robust Digital Solutions Give Dealers Advantage October 31, 2014
Spinella_Art_ head shot

Private Party Sales Taking More Share Away from Independents

Art Spinella
CNW Research

For franchised used-car dealers, prices slipped more than 1% in October compared to the previous month; and were nearly flat with the previous year, rising barely one-tenth of a percent vs. October 2013. Independent dealers had a 2.4% decline from September and a 1.7% increase vs. a year ago. Overall, unit sales were favorable for private party/casual sales.

Check out this month's Retail Automotive Summary

Franchised Dealers Sold Nearly 40% with Units Up More than 4% Over Last Year:
Independents were down more than 9% in share and casual sales were up more than 12% from October 2013.

Study Shows New-Vehicle Buyers Keeping Vehicles Far Longer than Prior to Recession:
Largest movement was shrinking in four-to-six six year ownership cycle, the mainstay for auto industry.

Prime Buyers Saw Slight Decline in Vehicle Loan Approval Rates:
No discernable reason but perhaps their over-use of credit as the recession winds down.


NADA’s Perspective Explores Ramifications of Digital Trends

Jonathan Banks
Executive Automotive Analyst
NADA Used Car Guide

Before Internet, consumer consideration for new or used was based on a limited number of influencing factors: previous brand experience, traditional media, and local dealership experiences. Today’s better-informed buyer starts with a much smaller consideration set of online touch points. Post-purchase, consumers share their experiences and absorb those of others. These opinions play a large role in shaping what they buy in the future.

Here's the latest edition of NADA Perspective

Online Sites Have Allowed Buyers to Compare Asking Prices and View Condition Photos:
Consumers could also access used vehicle trade-in and retail values online from sources such as NADAguides.com.

Dealers Now Access Pricing Data Derived from Thousands of Actual Sales Transactions:
Robust solutions give dealers far greater insight into makes and models proven to be most desirable in their local market.

Spread Between Auction Price and Retail Listing Price Closed to About $4,000:
Insight gained through technology and data has led to healthier used vehicle profit margins, despite more competitive pricing environment.
Expert Video Recap
Video news that moves people and ideas
Edmunds haggling ad
Edmunds TV Commercial on Haggling

Edmunds is see­ing a lot of view­er­ship and con­tro­versy over its TV spot show­ing a gro­cery store employee attempt­ing to hag­gle over check-out purchases.

Video News & Opinions
Video news that moves people and ideas
Ricky Beggs and Doug Turner at NAAA
A Different Adjustment with Trucks

How drop­ping gas prices are effect­ing used car prices, and an inter­view with Doug Turner, direc­tor of asset man­age­ment at JD Byrider dur­ing NAAA.

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