Webb: Changes Coming for Off-Rental Sales in 2014

Auto Remarketing

Off-rental vol­ume will like­ly climb mod­er­ate­ly next year, says Manheim’s Tom Webb, but there will like­ly be a degree of change in how these units will be sold.

Find out what Tom Webb pre­dicts the off-rental busi­ness will look like.

Off-rental vol­ume will like­ly climb mod­er­ate­ly next year, says Manheim’s Tom Webb, and there will like­ly be a greater per­cent­age of these units that will be sold in a dif­fer­ent fash­ion than per­haps what has been the tra­di­tion­al route for these vehi­cles.

“There should be a mod­est increase over­all (less than 5 per­cent), and an increas­ing share will be sold out­side the auc­tion process or in an offsite/online envi­ron­ment,” said Webb, chief econ­o­mist for Man­heim Con­sult­ing.

“And, as in recent years, look for big swings in the makes and mod­els being remar­ket­ed.”

This insight from Webb was from the Q&A por­tion of the lat­est Auto Indus­try Brief from Man­heim Con­sult­ing, in which he was asked his expec­ta­tions for off-rental vol­umes for 2014.

In anoth­er piece of analy­sis, the Man­heim econ­o­mist also tack­led anoth­er source of deal­er inven­to­ry at auc­tion: the off-lease sup­ply.

In this instance, he was look­ing specif­i­cal­ly at the lease return vol­ume from Ford Motor Cred­it in the third quar­ter.

Accord­ing to Ford Cred­it data cit­ed on Webb’s blog it came in at 27,000 units, steady with the sec­ond quar­ter but up from 14,000 units in Q3 of 2012.

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