Edmunds Sees CPOs at Highest Percentage Ever, RVI Group Looks at Biggest Segment Declines February 25, 2015

Edmunds Expects CPO Popularity to Continue this Year

Jessica Caldwell
Senior Analyst

The larger supply of used vehicles in the marketplace hasn’t yet been enough to offset prices, which generated record high average used vehicle values. Dealers saw an average of $16,800 in used vehicle sales last year versus $15,900 in 2013. Certified pre-owned (CPO) vehicles had a very strong year – 20.8% of used cars sold at franchised dealerships, the highest percentage since CPO programs were introduced.

See Edmunds 2014 Used Vehicle Market Report

Expects CPO Popularity to Continue With Lease Returns in Excellent Shape:
Used cars being traded faster than previous years, helping dealers maintain large CPO inventory.

One Age Category Seeing Noticeable Change Has Been 11-16 Year-Old Vehicles:
Represent nearly one-in-seven in sales and have seen an increase of 13.6%.

Interest Rates for Used Loans Have Declined and Loan Terms Are Longer:
Consumers can buy more expensive vehicle for lower monthly payment than in past.
Abdalah_Rene_RVI Group

RVI Sees Drop in Real and Nominal Prices from December and Increase Over January 2014

Rene Abdalah
Vice President, Passenger Vehicle
RVI Group

The RVI Used Vehicle Price Index (Real) decreased by 5.4% in January when compared to December. Compared to January 2014, the index increased by 0.1%. The Index (Nominal) fell 3.5% in January from December, and rose 2.4% from January 2014. All segments saw decreases in January from December. Small Pickups and Small SUVs had the smallest price declines, while Full-Size Sedans and Luxury Small Sedans saw the largest declines.

Here’s the latest RVI Group Market Update

New Vehicle Transaction Prices Fell 0.1% from November to December:
When compared to December of 2014, there was a 0.5% increase.

Gas Prices fell to $2.21 per gallon in January During Dramatic 7 Month Drop:
But through the week of February 9th, gas prices have risen to $2.27 per gallon.

RVI Used Vehicle Price Index Measures the Wholesale Values:
Or residual values of 2-5 year-old used cars adjusted for mileage, mix, and seasonality.
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