Editor’s Notebook: Top Remarketing Stories of the Week

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.
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