Editor’s Notebook: Haig Report Confident in Profitable Used Sales, Why Auction Direct USA Entered CPO

By Jon LeSage, Edi­tor, Used Car Mar­ket Reports

Here’s a few sig­nif­i­cant remar­ket­ing news devel­op­ments dur­ing the past week:

  • While the high­er sup­ply of used vehi­cles is some­thing to watch, Haig Part­ners isn’t too wor­ried. “A high­er sup­ply should help boost deal­er prof­its since, for some fran­chis­es, there is more prof­it in used cars than new cars,” accord­ing to a recent­ly released Haig Report. While sup­ply is increas­ing and retail used vehi­cle pric­ing is more com­pet­i­tive due to inter­net list­ings, gross mar­gins are get­ting bet­ter for pub­licly trad­ed deal­er groups. It might have to do with the sales mix skew­ing more towards lux­u­ry vehi­cles, or because of increas­ing sales in high­er mar­gin trucks and SUVS, the report says.
  • Why did Auc­tion Direct USA decide to enter the cer­ti­fied pre-owned (CPO) vehi­cle mar­ket through its agree­ment with NIADA? CEO Todd Hoagey thinks there are two win­ning fac­tors: CPO is more “cus­tomer-cen­tric,” and gives car shop­pers more options in terms of vehi­cle choice; and it makes total sense giv­en that con­sumer demand in the mar­ket for CPO is grow­ing quite a bit.
  • Black Book edi­tors are see­ing more dis­par­i­ty between car and truck used prices. In this week’s report, edi­tors iden­ti­fied a greater num­ber of car seg­ments with greater week-over-week depre­ci­a­tion. Trucks are going in the oppo­site direc­tion, with sev­en truck seg­ments show­ing either unchanged or pos­i­tive increase on the week.
  • NADA Used Car Guide refreshed its web­site, adding new fea­tures includ­ing a used car and truck blog with prod­uct reviews for pas­sen­ger vehi­cles and com­mer­cial vehi­cle trend­ing. Upcom­ing events are list­ed, includ­ing the Auto Finance and Com­pli­ance Sum­mit tak­ing place May 18–19 in San Diego, Calif.
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