By Jon LeSage, editor of Used Car Market Reports
Here’s a few remarketing trends to watch from the latest Used Car Market Reports…
CNW Research President Art Spinella on CPO Trend:
- During the first six months of 2013, about 60% of buyers of certified pre-owned vehicles were originally planning on buy new rather than used. That means by the end of this year that more than 1.2 million potential new-car buyers will be switching to used.
- The bulk of those are selecting buyers are choosing one-to-five-year-old models.
- Off-lease vehicles are the hot commodity in the growing CPO supply. Dealers are willing to increase trade-in values as much as 15% for vehicles they think are “certifiable.”
Black Book Editorial Director Ricky Beggs on Summer Market:
- Summer is usually a time of the year with more passive buyers and generally increasing depreciation of values levels, but the recent activity within auction lanes indicates a better than expected market.
- Interest was more directed at small, fuel-efficient cars, smaller utilities, and pickups. A $.15 per gallon rise in gas prices had something to do with it, and its $.21 per gallon higher than a year ago.
- If gasoline price increases continue, you can expect to see more interest in smaller vehicles. On the flip side of the coin, the construction and service industries still want pickups, which offsets the price trend and helps truck values.
NADA Used Car Guide’s Executive Automotive Analyst Jonathan Banks:
- June was a terrific month for new and used vehicle sales. Used vehicle prices were down 2.1% in May but improved in June to only 1.1% down.
