Vehicle supply is increasing as much as was expected, but wholesale used vehicle values were more affected by seasonal patterns than oversupply from off-lease and off-rental returns. Dealers continued to see a softening in used vehicle gross margins that became clear in Q4 of last year. Dealers have been moderating their bidding to stabilize their risk-reward ratio at resale.
Wholesale Prices Fell to 125.2 on the Index – Virtually Unchanged from Last Year:
That was only the second price decline in the past eight months.
Global Financial Market Turbulence Will Be Impacting Auto Loan Lenders:
If loan delinquencies and loss severities rise in Q1, it will be viewed with concern.
Compact Cars Remain Weakest of Major Categories with Y-O-Y Decline near 9%:
Pickups, both midsize and full-size, remain the strongest segment.