As we reported just the other day, analysts are somewhat confused by the continued rise of used car prices to near-record highs, despite a flood of lease returns hitting the market.
This just goes to show you the stupidity of most people who call themselves “analysts.” There’s absolutely no reason to think that used car pricing will go anywhere but up in the near future. If these analysts had ever spent a single day in a used car department at a franchise dealership, they’d understand why. Unfortunately, they haven’t.
But guess what? Your friend Bark has! And I’m here to tell you why this used car bubble isn’t going to pop any time soon.
Detroit’s triumvirate of General Motors, Chrysler and Ford are on pace to gain market share at home against their European and Asian competitors when the final numbers for 2013 are released later today, thanks to American consumers finding the Detroit Three’s offerings more attractive than what the competition has to offer.
With full sales numbers reported for July, TTAC is proud to announce its first-ever auto analyst grades [analyst estimates via Bloomberg]. For now we’re simply grading SAAR projections, but we’ve included OEM projections where applicable, for your own comparison. For July, the top-rated analyst was Edmunds.com’s Jessica Caldwell, whose SAAR prediction was an uncanny .5% off the actual number. Congratulations to Jessica and the Edmunds team, as well as our other A-rated analysts, Rod Lache of Deutsche Bank and Peter Nesvold of Jefferies (who squeaked in with an A-). Hit the jump to see how we calculated our grades.