Manheim’s Tom Webb Analyzes Industry Trends, Outlook for 2014

Look­ing ahead, Webb said 2014 will reveal “the next evo­lu­tion of the whole­sale mar­ket­place,” as declin­ing mar­gins, increas­ing whole­sale vol­umes and ris­ing mar­ket pres­sures will require new tools and strate­gies. For auc­tion par­tic­i­pants, this means the ongo­ing adop­tion of tech­nolo­gies that allow them to buy and sell vehi­cles through online plat­forms that pro­vide simul­ta­ne­ous, mul­ti-plat­form buy­ing and sell­ing oppor­tu­ni­ties.

The 42-page report, co-writ­ten by Man­heim Con­sult­ing Direc­tor Scott Hat­mak­er, exam­ines data and trends in all sec­tors of the used car mar­ket­place, includ­ing chap­ters on deal­ers, rental, leas­ing, repos­ses­sions, fleets, inter­na­tion­al whole­sal­ing and sal­vage auc­tions.

Among the high­lights:

Deal­ers

  • New vehi­cle sales increased for the fourth con­sec­u­tive year, and fran­chised deal­ers sold a record num­ber of cer­ti­fied pre-owned vehi­cles.
  • Increased financ­ing avail­abil­i­ty bal­anced out inven­to­ry acqui­si­tion chal­lenges for inde­pen­dent deal­ers.

Rental

  • New vehi­cle sales into rental were their high­est since 2007.
  • Low fleet depre­ci­a­tion and inven­to­ry fund­ing costs led to anoth­er record year despite a 1% decline in rev­enue per vehi­cle.

Leas­ing

  • New lease orig­i­na­tions were up to 3.2 mil­lion, high­est since 2000.
  • Increas­ing off-lease vol­umes in the years ahead will pose chal­lenges for remar­keters and oppor­tu­ni­ties for deal­ers.

Fleets

  • Com­mer­cial and gov­ern­ment fleet vehi­cle pur­chas­es increased for the fourth straight year.
  •  New vehi­cle sales into fleets are expect­ed to lev­el off near 900,000 by 2015.

Inter­na­tion­al

  • Whole­sale vol­umes and prices increased in the U.K., while at the retail lev­el both new and used vehi­cle prices improved.
  • Emerg­ing mar­kets such as Chi­na and India will expe­ri­ence rapid­ly increas­ing used car sales in the years ahead.

Sal­vage

  • Prices and vol­umes increased mod­est­ly at sal­vage auc­tions in 2013.
  • An increas­ing num­ber of deal­ers are pur­chas­ing and repair­ing sal­vage-titled vehi­cles to sell to retail buy­ers.

The Report is avail­able in PDF for­mat by vis­it­ing the Used Car Mar­ket Report tab with­in the Man­heim Con­sult­ing site, locat­ed at www.manheim.com/consulting.

 

 

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