Used Vehicle Supply Limited at November Start
Wholesale used-vehicle prices decreased 2.3% in October from September and were down 4% from a year ago.
AutoBidMaster, LLC
Black Book, National Auto Research
Insurance Auto Auctions
Wholesale used-vehicle prices decreased 2.3% in October from September and were down 4% from a year ago.
Electric vehicles can burn at twice as hot as magma, but advances in battery technology and operational practices will further reduce the chances of a catastrophic fire.
October’s price decline is eerily similar to last October’s 2.2% drop, and this was not unexpected as the market remains balanced.
The enhanced rapid cameras spread across dealer check-in, commercial check-in, and post-reconditioning are designed to capture nearly 1,900 vehicles each day.
Almost all major market segments saw seasonally adjusted prices that were again lower year over year in the first half of October.
The overall used-vehicle inventory volume is still considered limited and has been stuck in the 2.2 million to 2.3 million range for the past four months.
September auction sales bolstered prices through the channel, but wholesale is at a crossroads, mainly from concerns about the UAW strike possibly slowing new retail sales and moving buyers into the used market.
The fourth quarter should bring stable pricing among buyers and sellers, which should reflect only modest changes between now and the end of the year.
Since the labor actions started Sept. 15, the U.S. has ample inventory for now from the Detroit automakers that should keep steady supply through the end of the month. The all-important Ford F-150 had 97 days of supply at the start of October.
Sales in Q3 are expected to surpass 3.9 million, a jump of more than 15% from the same timeframe one year ago.
The fast-moving merger of digital and smart technologies is leading to more accurate vehicle inspections, thereby reducing liability, disputes, and losses for remarketing and rental car businesses.
Analysis: The actions of the UAW will reverberate through the larger auto business, but nowhere near what was experienced in April 2020. Sales into fleet could suffer in 4Q if a strike is wide and persists. Rental car companies may return to the used car market like they did in 2021 and 2022, driving prices higher.
With sales slightly stronger than expected, tight supply, and prices at about 6% below last year, these factors are expected to prevent any substantial decline in wholesale prices through year-end.
The number of used vehicles for sale had been increasing after hitting a low point in March but that increase in inventory stalled in mid-July and into August, as sales unexpectedly picked up.
The United Auto Workers contract with the Detroit Big 3 automakers expires Sept. 14 as new inventory remains 68% above last year's level.
The 2016 Conference of Automotive Remarketing (CAR) took place March 16-17 at Caesars Palace, Las Vegas. Now in its 21st year, CAR delivered high-quality discussions and information on subjects ranging from automating the if-bid system to how to maximize auction earnings to a look forward to residual values for 2016-2017. In addition, attendees had plenty of opportunities to network and build their personal and professional connections. Photos by Chris Wolski and Steve Reed.
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