Spinella: Franchised Selling More Used than Independent, LeSage: Tesla Seeing Strong EV Residual Performance February 6, 2015
Spinella_Art_ head shot

Dealers See Big Gains in Transaction Prices Over Year Ago

Art Spinella
CNW Research

Total used-car sales in January were 2.38 million units sold, up 2% over one year earlier. Franchised dealers and private party sales were up 4.63% and 3.42%, respectively. Independent dealers saw sales slip 1.86% from a year ago. Both franchised and independent dealers saw transaction prices jump – franchised more than 27% over a year ago and 3.34% over December 2014; independent dealers were up 13.5% over January 2014 and 3.2% over the previous month.

Here’s the latest report from CNW Research on used retail sales

Growth in Off-Lease Helped Gain for Franchised and Independent Dealers:
While franchised also saw higher certified pre-owned (CPO) help used sales.

Fewer People Visited Dealership Used Car Lots in January than in December:
Off nearly 30% and following typical, historic December-January trends.

Consumers Continued Hunting for Best Deals Shopping Outside Local Market:
Number that bought outside their local market rose by more than 12% vs. year ago.
Jon LeSage headshot photo

What ALG’s Eric Lyman Thinks about Green Car Sales & Residuals

Jon LeSage
Used Car Market Reports

With gasoline prices staying down for the foreseeable future, the issue of new vehicle sales forecasts and used vehicle valuation for electric vehicle and hybrids has popped up. ALG’s VP, industry insights, talked to me about what consumers think about it. For now, consumers are responding best to two themes, it’s an environmental statement and it’s a statement of affluence, Lyman said. For residual values, Tesla has been the only solid EV performer so far.

Here’s what ALG thinks about EV and hybrid sales and residuals

“Breakeven Point” is a Bit Long in this Period of Low Gasoline Prices:
Hybrid can take five-to-six years, and diesel can take 10 years as the price stays high.

Maintenance is Strong Selling Point for EVs Compared to Gas Engine Vehicles:
They don’t have same maintenance components such as oil changes and moving parts.

Consumers “Extremely Well Informed” on Green Car Technology they’re Shopping for:
It creates a “situation” for dealers when consumers know more than they do.

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Webb_Tom_Manheim_NADA 2015
2015 Looks Good for Fleet Remarketing

This year should be pretty good for used fleet vehi­cles even with increases in off-lease and off-rental units.

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Kurnick_Rob_Penske Automotive
Penske Automotive on Retail Trends at NADA 2015

Penske’s Rob Kur­nick says 2014 was a great year for the com­pany, and that 2015 looks great domes­ti­cally and overseas.

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