By Jon LeSage, Editor, Used Car Market Reports
- A new study shows that connectivity is essential for converting used car shoppers into buyers. Three of their “must-have” resources on a used car purchase include being able to use MP3 (40%), Bluetooth (30%), and an iPod adapter (+25%). Other hot topics above 20% were keyless entry, remote start, rear-view camera, and navigation systems. CarStory, a provider of crowdsourced data and analytics on used vehicles, surveyed consumers age 18 to 65.
- Classic cars are becoming a hot market for auctions and dealerships, according to a new IBISWorld study. Revenue is estimated to increase during the next five years, and that includes a “robust” jump this year. Read all about some of the interesting sightings at vintage car auctions witnessed by Bob Pease, Collector Car Editor.
- Porsche Cars North America is utilizing a Cox Automotive software platform to help manage its off-lease portfolio. Last month, Porsche and its dealers began using RMS Automotive’s Actuos portfolio management tools to accept off-lease vehicles turned in by consumers. The platform draws on the expertise and data of Cox Automotive companies – such as vAuto, Kelley Blue Book and Manheim – to offer a suite of analytical products that companies can use.
- Used electric-vehicle prices continued to remain soft in the past two years, a situation compounded lately by low gasoline prices. New car launches and refreshed models such as the 2016 Chevrolet Volt coming out may be influencing the market, too. Range an technology concerns, and stiff competition from affordable gas-powered, fuel efficient cars, are hurting that market, said NADA Used Car Guide’s Larry Dixon. The Tesla Model S has been strong in retained values, but there aren’t that many of them running through auction lanes.
- TrueCar saw its largest quarterly increase in dealer members during Q1. TrueCar’s Certified Dealer network of franchised and independent dealer increased by 840, bringing the total up to 10,680 dealers.
- CarMax’s in-house auction arm saw its largest increase in per unit profit. It exceeded $1,000 in profit, per wholesale vehicle in its fourth quarter (and its fiscal year ended on Feb. 28). Wholesale vehicle gross profit for the quarter was $1,036, which was about a 9% increase year-over-year.
- March came close to surpassing last August as the best month ever in certified pre-owned (CPO) units sold – but it was the best quarter for CPO sales ever. Autodata also reported that March had the strong ever recorded daily sales rate at 8,883 units. Six brands had their best monthly CPO sales records: Chrysler, Kia, Infiniti, Maserati, Nissan, and Subaru.