By Jon LeSage, Editor, Used Car Market Reports
Here’s a few significant remarketing news developments during the past week:
- CarMax dominated the retail used vehicle space for dealership groups, with substantial growth in 2014 – 526,929 used units sold last year versus No. 2, AutoNation, at 214,910 sold. CarMax saw an increase of nearly 80,000 used units sold last year over 2013. Its used retail revenue grew from $8.7B in 2013 to $10.4B in 2014.
- Manheim chief economist Tom Webb found a very impressive number while crunching financial reports from the seven publicly traded dealership groups – CarMax, AutoNation, Penske Automotive Group, Sonic Automotive, Group 1 Automotive, Asbury Automotive Group, and Lithia Motors. Looking at Q1 2015 reports, Webb found that these companies had a same-store increase in retail used-unit deliveries for the 23rd consecutive quarter.
- NextGear Capital made two announcements over the past week on alliances with Cox Automotive partners: GO Financial and NextGear Capital launched their “Gear Up and GO” rebate program. This new promotion provides dealers the opportunity to earn a $100 credit for each eligible vehicle that is floor planned with NextGear Capital and sold to a consumer via GO financing. Also, NextGear has added Kelley Blue Book Values to its myNextGear web and mobile applications. As a result of this integration between the two Cox Automotive business units, NextGear Capital customers can now receive current market-reflective values at no additional cost for new and used vehicles. Through these evaluation tools, dealers now have access to entry-level data to help them make informed purchasing and selling decisions from either the comfort of their office or on the go.
- Tesla Motors has launched a certified pre-owned (CPO) website page, but it might be a bit early in the process to see much inventory there. During a recent media conference call, Kelley Blue Book’s Alec Gutierrez said that with current monthly sales of the Model S in the 1,500 to 1,700 range, it’s still early in the remarketing process. It does make sense to get started now, though, he said. “They want to have enough certified pre-owned inventory out there to help give consumers something in between the Model 3, whenever that arrives, and the full blown Model S or Model X, when that arrives,” Gutierrez said. “So to me, it’s a good play, but a long-term strategy for sure.”
- Certified pre-owned (CPO) sales in April beat year-ago figures by more than 11% and March 2015 sales by 3.4%. The daily selling rate for CPO sales in April was 8,268, up from 7,427 one year earlier. Land Rover and Porsche enjoyed record-high CPO sales.