Remarketing Roundup: Are Residuals Overvalued? Spinella Thinks So

CNW Research President Art Spinella has a few more provocative points to make – new vehicle lease residual value forecasts are being overvalued 5% to 10%. This is being done to get monthly payments lower and beat competitors in new vehicle sales.

Spinella is also featured in a video interview with even more provocative things to say. Here he takes apart the usual forecast numbers being placed on new vehicles – month-over-month and year-over-year have less meaning these days, he says. Seasonal adjustments aren’t as real as incentive adjustments.

Other remarketing analysts appear to be disagreeing with CNW Research’s warning about leasing being in trouble; one of them being Craig Carrow of Fiserv, who’s featured in a Skype video interview.

In the weekly market report from Black Book, Editorial Director Ricky Beggs reported that declining gasoline prices are starting to show their usual effect on softening prices coming to fuel-efficient vehicles.

Find out more about what used vehicle market indicators are looking like this week…….

Patti Stanley Becomes ServNet’s President for Next Two Years

Patty Stanley is taking the helm as ServNet's President for the next two years. Stanley is co-owner of two ServNet auction facilities: Carolina Auto Auction and Indiana Auto Auction. She had most recently served as the group's Vice President, and has also served as both Director and Treasurer. R. Charles Nichols, owner of Bel Air Auction and Tallahassee Auto Auction, is now Chairman of the Board after completing two years as President. It was part of a leadership transition at ServNet’s Fall Owners’ Meeting in Chicago.

Declining Gas Prices Starting to Show Usual Effects

Ricky Beggs Editorial Director Black Book Gasoline price decreases, increasing used vehicle inventory, the federal budget impasse, and seasonality are being carefully watched by Black Book; Gas prices saw continued decline, with the past week at $3.35 – another $.02 decline. It didn’t have an adverse effect on fuel-efficient vehicles until this past week when […]

Leasing Boom Means Overvaluing Residuals and Growing CPO Sales

Art Spinella President CNW Research CNW Research says that the boom in new vehicle leasing is causing automakers to overvalue future residual values 5% to 10% to get monthly payments lower and beat out the competition; Dealers and OEMs will still see some gains from leasing boom – certified pre-owned (CPO) vehicles are coming from […]