In 2013, 3.2 million new cars and light trucks were leased in the U.S., an almost threefold increase from 2009. The 2014 Manheim Used Car Report, produced by one of the larger used vehicle auction companies, says that the auto industry will have to change the way it remarkets cars if it is going to successfully handle the increased volume of off-lease vehicles.
According to Automotive News, the Manheim report also warns that dealers who take in off-lease vehicles on behalf of lessors (so called ‘grounding’ dealers, “will not be willing or able to acquire the same large share of off-lease units that they have in recent years.” (Read More…)
During the next several weeks you are going to be exposed to a lot of pointless hysteria about used cars prices in the Northeast.
Journalists will point out the extremes and the outliers to a media audience that is always easily attracted to the extremes and outliers of our society.
But it won’t be the truth. The real bump in traffic related to Hurricane Sandy won’t be with used cars at all.
It will be with new cars.
There is one positive aspect to the Japanese tsunami: It seems to lift resale values. Manheim’s Used Vehicle Value Index just rose to another record in April, says Automotive News [sub]. Manheim has been keeping track of used car prices since 1995. Pushed by tighter supplies and higher demand, the index climbed to 126.6 last month, up from 124.2 in March and 120.7 in April 2010. (Read More…)